JERA, the Japanese energy giant, purchased LNG from the US for the first time at the beginning of January this year.
JERA believes the purchase of US LNG will contribute to a stable supply in Japan through the diversification of procurement regions and LNG price Indices.
Ahead of Gastech Japan 2017, which will be held in Tokyo this April, the Senior Executive Vice President of JERA has confirmed that senior team members will be in attendance at the Gastech Exhibition and Conference in order to seek business opportunities and network to strengthen its gas and LNG business. The company is currently one of the largest LNG buyers in the world.
Hiroki Sato, Senior Executive Vice President, Chief Fuel Transactions Officer, at JERA comments, “According to the latest IEA report, fossil fuel will remain a key aspect of our global primary energy supply up toward 2030. Currently, coal is the most popular form of fossil fuel, but toward 2030 we believe that gas and LNG will be the preferred choice of fossil fuel.”
As part of its business strategy, the company aims to double its revenue from 2,200bn JPY ($19.4m) to 4,600bn JPY ($40.5m), and to make a 14-fold increase in net income between 2016 and 2030. In terms of its business and operational activity, JERA aims to maintain its LNG transaction volume from 30 to 40 million metric tonne per annum, investing in a total of 12 projects worldwide, and nearly doubling its LNG transport vessels, from 16 to 30.
Sato continued, “We are striving to maintain our world top-class offtake volume, and so we are keen to develop our trading business within the global market. We have begun to make major strides, which is clearly evident by our announcement of the binding SPA with Centrica, and the acquisition of EDF Trading’s coal business with possible wider collaboration platforms including LNG. We are looking to invest in several greenfield LNG projects in Eastern Africa and North America. We are also interested in further developing business networks in India, China, Taiwan and Singapore as we foresee they will be big players in the future.”
Like JERA, many other renowned Japanese energy companies will come together to host Gastech 2017.
The Gastech Consortium will enable attendees to explore further business opportunities at the global level. The Consortium consists of Japan’s 10 leading energy companies: JERA, Tokyo Gas, Mitsubishi Corporation, Mitsui & Co, INPEX Corporation, ITOCHU Corporation, Japan Exploration & Petroleum Corporation Co., Ltd (JAPEX), JX Nippon Oil & Energy, Marubeni Corporation and Sumitomo Corporation.