EDF Trading, JERA Form LNG Joint Venture

On July 3, 2018 JERA Co., Inc and EDF Trading Limited (EDFT) announced their intention to form an LNG optimization and trading joint venture, JERA Trading Pte. Ltd. (JERAT).

In addition to this transaction, EDF Trading North America (EDFT NA) and JERA Energy America (JERA EA), an affiliate of JERA, entered into an agreement to fulfill JERA EA’s requirements at the Freeport liquefaction terminal in Quintana, Texas.  EDFT NA will manage the natural gas and electric supply for JERA EA as well as provide optimization services for JERA EA’s transportation portfolio.

EDFT NA has an extensive physical and financial presence in the natural gas and power markets. It is one of the leading marketers of gas and power in North America and is well positioned to source and supply the natural gas which will be liquefied and shipped around the world by JERAT.  JERA EA has a 2.3 mtpa liquefaction tolling agreement (LTA) with Freeport LNG.  

“It is an opportunity to utilize our extensive US natural gas and power platform to serve a portion of this global joint venture.  We look forward to working with JERA EA and our existing network of assets and enabling agreements to support this venture as we expand our natural gas presence,” said Jason Earnheart, Managing Director and Head of Origination, EDFT NA.

“This is a great opportunity for us to play such an integral role in sourcing gas from the US to supply the global LNG markets for JERA,” said John Rittenhouse, Chief Executive, EDFT.  “We have access to European regasification capacities so are well equipped to provide European market access to JERA Trading when needed,” he continued.

The transaction is subject to customary regulatory approvals and is expected to be completed by early 2019.