Japan's JERA, the world's largest LNG buyer, announced on Wednesday the creation of a wholly-owned subsidiary called JERA Global Energy Solutions to manage its LNG, upstream, low-carbon fuels, and shipping businesses. Headquartered in Singapore, the new vertically integrated company will focus on building a stable and diversified long-term LNG portfolio while advancing lower-carbon fuels such as ammonia and hydrogen, with Japan's supply security as its highest priority. JERA GES will gradually take over existing long-term LNG and low-carbon fuel activities under a planned transfer schedule to maintain business continuity. The move comes amid volatile global LNG markets, with JERA recently signing a 20-year supply deal with Malaysia's Petronas for 2 million tons of LNG annually starting in 2028, adding to plans to triple U.S. purchases to as much as 5.5 million tons per year.
JERA creates a standalone LNG trading arm to secure long-term supply, enhancing its ability to meet Japan's demand.
Petronas signs a 20-year LNG supply deal with JERA, securing a major customer for its LNG.