Japan Secures Long-Term LNG Supplies Amid Peak Demand Season

Japan's largest liquefied natural gas (LNG) buyer, JERA, has secured enough supplies to avoid power shortages during peak summer demand. The company, which is the world's biggest LNG purchaser, has reduced its purchases from Qatar and will ensure a stable supply for the winter season through its global trading division.

JERA has ramped up coal generation this year to maintain power supply security after disruptions in export flows prompted it to seek alternative supplies. The company has signed a 20-year LNG supply contract with Malaysia's Petronas, which will deliver 2 million tons of gas annually starting in 2028.

This deal is part of JERA's efforts to diversify its LNG supply, which currently comes mostly from the United States and Australia. The company has also pledged to triple its US imports to 5.5 million tons annually, a 10% increase on current levels, making up one-third of its total LNG purchases.