Japan’s JERA Finalizes Long-Term Deals to Buy 5.5 Million Tons Per Year of U.S. LNG

U.S. companies have finalized four 20-year agreements with Japan’s JERA Co. to supply up to 5.5 million tons per year of liquefied natural gas, according to a June 11 press release from the U.S. Energy Department. The deals are expected to support over 50,000 U.S. jobs and contribute more than $200 billion to U.S. GDP, highlighting U.S. President Donald Trump’s attempt to unleash U.S. LNG and expand its role in boosting global energy security and bolstering the U.S. economy.

The agreements include sales and purchase contracts with NextDecade Corporation and Commonwealth LNG, as well as heads of agreement with Sempra Infrastructure and Cheniere Marketing LLC, to procure LNG from the U.S. Gulf Coast. The announcement marks a significant step in expanding U.S. energy exports and attracting further investment.

Under the Trump administration, the department has approved LNG export volumes totaling approximately 106 million metric tons per annum to non-free trade agreement countries. In January, President Trump issued an executive order lifting a pause on LNG export facility approvals that had been instituted during the Biden administration. The pause did not affect exports that had been authorized or the ability to supply allies in Europe, Asia, or other recipients of authorized U.S. exports. In April, the department repealed a policy statement issued under the Biden administration that required authorized LNG exporters to meet specific criteria before it would consider extending the commencement date for an approved project. The move aligns with the Trump administration’s efforts to expand U.S. oil and gas production and exports.

In May, the department finalized the 2024 LNG export study, which concluded that LNG supports the U.S. economy, strengthens relationships with trading partners and allies, and enhances national security. The department’s analysis found that the U.S. has a strong natural gas supply that is adequate to fulfil increasing levels of exports while abating impacts to domestic prices, and that increasing LNG exports elevates U.S. GDP and creates job opportunities while improving the nation’s trade balance. Moreover, higher U.S. LNG exports increase domestic and international global security with no apparent effect on global greenhouse gas emissions, according to the study.