JERA Co., Inc., Japan’s largest electricity generator and one of the world’s leading liquefied natural gas (LNG) buyers, has signed an agreement with Dunkerque LNG SAS to secure an annual regasification capacity of 2 billion cubic meters at the Dunkerque terminal, located in northern France. This contract, with a six-year term starting in 2031, represents JERA’s first step in acquiring regasification capacity outside its national territory.
A key step to optimize the LNG supply chain
The agreement with Dunkerque LNG integrates into JERA’s growing international procurement portfolio. Currently, the company has already secured 5.5 million tons per year of LNG supply from the United States under flexible FOB-type contracts, thereby strengthening its capacity to balance fuel flow between regions with different demands such as Asia and Europe.
By having direct access to European regasification infrastructure, JERA not only diversifies its logistics routes, but also increases the efficiency of its supply chain, which allows it to respond more quickly to global geopolitical and commercial conditions.
Energy security for Japan in a changing environment
LNG demand in Japan has shown increasing variability due to the aging of oil-fired thermal power plants and the rapid development of renewable sources. Given this scenario, having a flexible and resilient supply chain has become essential to guarantee the country’s energy security.
Strengthening the flexibility of our LNG supply chain is essential to ensure a stable energy supply in an increasingly uncertain environment. By expanding access to international LNG infrastructure to complement our diversified LNG portfolio, we enhance our ability to respond to changing market conditions, while supporting Japan’s energy security.
Ryosuke Tsugaru, Director of Low Carbon Emissions at JERA.
Vision for global expansion and diversification
Beyond the agreement with Dunkerque LNG, JERA continues to expand its international network. The company maintains strategic alliances in the Middle East, Asia-Pacific, and North America, with the goal of building a robust LNG portfolio that allows it to maintain competitive prices, expand sales channels, and develop new demand especially in the Asian market.
These actions align with the corporate goal of achieving net-zero CO₂ emissions by 2050, both in its domestic and international operations.
Source and photo: JERA