Japan’s Top LNG Buyer to Sell Excess Gas in Global Markets

The biggest Japanese LNG importer and largest power producer, JERA, plans to sell liquefied natural gas in the long term as part of a strategy to tap global LNG markets and sell any excess gas supply if domestic demand is low, a senior executive has said. JERA wants to “identify additional markets where we can sell,” Irtiza Sayyed, chief executive officer of the newly-created JERA Global Energy Solutions, told Bloomberg in an interview published on Wednesday. Earlier this summer, JERA said it is creating a wholly-owned subsidiary to…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.