Japan's Jera to buy LNG from Oman
Japan’s Jera has signed an agreement to purchase LNG from state-owned Oman LNG, it said on December 27.
The Japanese company will purchase up to 12 cargoes or about 0.8mn metric tons/year of LNG produced from the Oman LNG project from 2025 for 10 years.
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“LNG procurement competition has been intensifying and thus, stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan,” Jera said.
“This is an FOB contract, which has a high flexibility and is expected to enhance the capability to respond to uncertainties in the domestic LNG supply and demand,” it added.
Oman LNG is 51% owned by the government of Oman, 30% by Shell, 5.4% by Total, 5% by Kogas, and Japanese and Omani firms own other stakes of under 3%.
Jera recently signed two loan agreements with the Japan Bank for International Cooperation (JBIC) to raise funds to purchase LNG. The first deal was signed in October while the second pact was inked in November.