Jera, Kogas to cooperate in LNG business
Japan’s Jera has entered into a memorandum of understanding with Korea Gas Corporation (Kogas) regarding cooperation in the LNG business, it said on April 10.
Under this MoU, the parties will discuss opportunities for mutual collaboration in the LNG business including LNG swaps, trading, ship optimisation, and market view exchange.
Jera said that Russia’s invasion of Ukraine has created a severe energy environment, such as the reduction of pipeline gas supply to Europe, and the uncertainty regarding global energy supply is drastically increasing.
“In responding to these circumstances, under this MoU, Jera and Kogas, which are among the largest buyers in the global LNG market, will strengthen their strategic relationship and consider developing schemes of cooperation regarding their LNG supply and demand, to enhance stable energy supply in Japan and Korea,” the company added.
Jera stated that as a long-term matter, there is an acceleration of the energy transition to a carbon-neutral future and LNG will play an even more important role as transition fuel not only in Europe but also in Asia.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.