JERA Co., Inc. has signed a throughput agreement with Dunkerque LNG SAS to secure regasification capacity of 2 billion m3/y, equivalent to approximately 1.5 million tpy of LNG, at the Dunkerque LNG terminal in Dunkirk, France. The six year agreement will commence in 2031. This marks JERA’s first acquisition of overseas LNG terminal capacity and strengthens the company’s ability to manage global LNG supply and demand.
The agreement with Dunkerque LNG complements JERA’s expanding LNG procurement portfolio, including the 5.5 million tpy of new long term LNG supply from the US under flexible FOB contracts. By securing regasification capacity at the terminal, JERA enhances the flexibility of its global LNG portfolio, enabling more efficient balancing of LNG supply and demand across regions. This also creates opportunities to respond to demand differences between Asia and Europe while supporting the diversification of the company’s LNG sales flows.
Japan’s LNG demand has become increasingly variable due to the ageing of oil fired power plants and the rapid expansion of renewable energy, while geopolitical and market uncertainty continues to grow. As a result, greater flexibility in fuel procurement and operations is becoming increasingly important to maintaining energy security.
“Strengthening flexibility across our LNG supply chain is essential to ensuring stable energy supply in an increasingly uncertain environment,” said Ryosuke Tsugaru, Chief Low Carbon Officer at JERA. “By expanding access to international LNG infrastructure to complement our diversified LNG portfolio, we are enhancing our ability to respond to changing market conditions while supporting Japan’s energy security.”