Jera Inks LNG Pact with Dubai

Japanese trading firm Jera said April 6 it has signed a memorandum of understanding with Dubai Supply Authority (Dusup) for cooperation in the LNG business. The two entities will look to have joint procurement of LNG and opportunities for cooperation relating to LNG shipping and storage capacity.

Jera said that Dusup has supported economic growth by sourcing gas by pipeline and through the development of a floating (FSRU) LNG import facility in Jebel Ali. Jera added that it believes that strengthening its links to Dusup will contribute to expanding business opportunities for both companies.

This comes two weeks after Jera inked a MoU to cooperate closely with fellow leading Asian LNG buyers Kogas and Chinese state CNOOC.

Jera, a 50-50 joint venture of utilities Tokyo Electric (Tepco) and Chubu Electric, has said that it will continue to work together with LNG industry counterparts both within and outside Japan as it seeks to achieve even more competitive procurement in the LNG market.

It has been seeking more flexible contractual arrangements, and a phased reduction of the total volume of its long-term LNG procurement contracts, and in May 2016 even agreed a small contract to supply LNG cargoes to EDF Trading.  

Shardul Sharma