Japan’s JERA Secures LNG Supply in $2.5 Billion Freeport Deal

As a result of the acquisition of GIP’s stake, JERA said it will now be involved in the entire existing Freeport LNG project as well as will work to advance new LNG projects.

Japan’s JERA Secures LNG Supply in $2.5 Billion Freeport Deal

Freeport LNG uses all-electric motor drives to power the facility, reducing plant emissions by more than 90%. (Photo: Freeport LNG)

JERA Co. Inc. agreed to boost its holdings in Freeport LNG through a $2.5 billion investment in the Houston-based LNG export company as JERA, the world’s biggest buyer of LNG, aims to shore up long-term supplies of gas for power generation in Asia.

“JERA believes it will be possible to supply LNG to Japan when supply is tight and to otherwise respond flexibly to the LNG supply and demand situation in the Asian region,” JERA said in a Nov. 15 release announcing the transaction.

According to the release, JERA, which already has a share of Train 1 of Freeport LNG, agreed to acquire Global Infrastructure Partners’ 25.7% interest in Freeport LNG Development LP for $2.5 billion, subject to customary purchase price adjustments. GIP’s second flagship fund, Global Infrastructure Partners II, acquired the stake in 2015.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.