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JERA enters LNG SPA with EDF Trading

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LNG Industry,

JERA Co. Inc. has announced that it has entered into a sales and purchase agreement (SPA) regarding the sale of LNG with EDF Trading.

The SPA will cover up to approximately 1.5 million t of LNG to EDF, which will be delivered at European LNG terminals. The deliveries will commence in June 2018, and will last for approximately two and a half years.

In the statement, JERA confirmed that the price of the LNG sold will be linked to the European gas market price, and that the volume sold can be adjusted at JERA’s discretion.

This will allow the company to adjust to fluctuations in demand for the fuel. JERA also claims that it will continue to seek such activity for the flexible structure of the procurement of LNG, with the aim of decreasing the price of LNG in Asia.

Edited from press release by David Rowlands

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