Japan's JERA is seeing increased competition for US LNG from Asia and Europe
JERA, Japan's largest power generator, expects the competition for U.S. LNG to grow as Asia and Europe increase their demand.
There are many buyers. Asian and European buyers really want U.S. Energy. There are many competitors," JERA Asia's CEO Izumi Ka told the India Energy Week Conference on the sidelines.
After the Trump administration lifted the moratorium in January on new LNG export permits, companies in the U.S. are moving forward with plans to expand or create new export capacity. Trump's decision may pave the path for an additional 100 million metric tonnes per year (tpy), of LNG, by 2031.
Kai stated that 10% of JERA’s current offtake volume comes from the U.S.
He added that "we may increase our sourcing of U.S. LNG in the future depending on (price-) competitiveness."
Kai said that the company is looking at multiple LNG projects in the U.S. Gulf Coast but refused to confirm if JERA would be interested in taking a stake Woodside Energy’s Louisiana LNG Project.
Woodside wants to sell 50% of its Louisiana LNG project stake, which it now owns after acquiring Tellurian Inc for $1.2 billion in October.
Kai added that the company would continue to look for opportunities in the Middle East and Australia.
He said: "If something happens, we can still manage the physical supply." Reporting by Mrinalika and Sethuraman N R from Delhi, with additional reporting by Yagnoseni das; editing by Florence Tan and Stephen Coates
(source: Reuters)
