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Japan's JERA plans to expand US LNG purchases to diversify energy supply

Japan's most significant leading LNG purchaser, JERA, prepares to increase its purchases of melted natural gas from the United States to diversify its supply and meet demand development stimulated by data centres and AI, a. senior executive informed Reuters.

U.S. President Donald Trump vowed to release the U.S. energy market to improve output and threatened the EU with. tariffs if the bloc does not buy more gas, implying JERA might. need to compete with other purchasers for more U.S. gas.

Dealing with in between 30-35 million metric heaps (mt) of LNG. annually, Japan's biggest utility presently sources nearly half. of this from the Asia Pacific area, including Australia,. Malaysia and Indonesia.

This represents really high direct exposure. My plan is to. rebalance that and to make our LNG supply portfolio more. diversified, Ryosuke Tsugaru, JERA's head of LNG division, informed. Reuters on the sidelines of the World Economic Online forum annual. conference in the Swiss resort of Davos.

My plan is to increase our direct exposure to the U.S. energy. jobs. We are now purchasing 3.2 million tons in long-lasting. contracts from America which is small versus the total purchase. quantity, he added, without detailing the expected increase.

However, JERA will be watching carefully the long-lasting. sustainability of LNG policies in the United States, the world's. largest LNG exporter which in 2024 alone shipped 88.3 million. tonnes of the super-chilled gas.

Trump ordered the U.S. Energy Department to resume. considering applications for LNG exports after the Biden. administration froze them.

Tsugaru stated that JERA welcomed Trump's policies to. accelerate oil and gas production and advancement of new LNG. tasks, nevertheless long-term sustainability stays crucial.

The United States is now significant energy supplier to global market. So we. are very much hoping America continues to be reliable and. competitive source of supply, he added.

Prioritising supply reliability and price, JERA likewise. plans to talk to providers in the Middle East to have more. geographically balanced energy portfolio, he added.

Tsugaru said he was hopeful of continuing to grow a. long-term LNG partnership with Qatar going back to the 1990s.

Reuters has reported that Qatar was finding it tough to agree. brand-new LNG deals with Japan amid rising competition from the U.S. and elsewhere with more versatile contract terms.

Qatar has their own business goals and requirement. We do have our own, but leveraging long term partnership ... I. am confident to continue and grow long-term LNG partnership with. Doha, he stated.

Tsugaru said JERA has a more favorable view on gas. need and energy demand in Japan, driven by emerging need for. steady power, consisting of from data centres and AI.

Requested for his market forecast, he said JERA was typically. bullish for the 2026 to 2029 duration to be type of balanced. given that some new LNG tasks will be postponed.

(source: Reuters)