Oman LNG inks gas supply deal with Japan's JERA

As per the terms of the agreement, Oman LNG will supply 0.8mn metric tonnes per annum of LNG to JERA over a span of 10 years, commencing from 2025

Oman LNG Company on Tuesday announced the signing of a significant sales and purchase agreement (SPA) with JERA, Japan's largest power company.

As per the terms of the agreement, Oman LNG commits to supplying 0.8mn metric tonnes per annum of LNG to JERA over a span of 10 years, commencing in 2025.

This agreement not only solidifies the partnership between Oman LNG and JERA but also amplifies Oman LNG'S presence in Japan, a pivotal market it has served for the past two decades.

Hamed al Naamany, CEO of Oman LNG, remarked on the significance of the agreement, saying, “This sales and purchase agreement underscores the deepening partnership with Japan's foremost LNG importer, JERA. It exemplifies the trust and confidence JERA places in Oman's LNG. This deal ensures mutual growth while guaranteeing a stable energy supply to this critical market.”

Beyond raising Oman LNG'S reputation as a reliable LNG supplier, this agreement underscores the company's ability to navigate the evolving global energy landscape.

Established in 2015, JERA holds a significant share in Japan's electricity production, contributing approximately 30% of the nation's total. With a global footprint, JERA possesses expertise across the entire energy supply chain, spanning from LNG upstream projects and fuel procurement to transportation and power generation.

JERA, which stands for Japan’s Energy for a New Era, has committed to achieving net zero CO2 emissions from its domestic and international operations by 2050, championing an environmentally sustainable energy transition.

As part of its ongoing global marketing efforts, Oman LNG has successfully secured several new long-term gas supply agreements since the begining of 2023. These agreements extend Oman LNG'S reach beyond 2024, attracting buyers from emerging markets in the Middle East, East Asia, and Europe.

In March, Oman LNG finalised a sale and purchase agreement with Germany’s SEFE (Secure Energy for Europe) to deliver 0.4mn metric tonnes of LNG annually to Germany. This landmark agreement marks a significant milestone in the strategic energy partnership between Germany and Oman, with SEFE becoming the first German company to engage in LNG procurement from Oman.