Jera touts 20-year LNG agreements with U.S. suppliers
Jera, Japan's largest power generation company, has reached agreements to buy as much as 5.5 million tons per year of liquefied natural gas from U.S. suppliers.
The 20-year deals include purchases by Jera from NextDecade and Commonweath LNG, CEO Yukio Kani said in an interview. The company has also entered into nonbinding agreements with Sempra Infrastructure and Cheniere Marketing.
The agreements bolster Japan's role as the world's second-largest LNG importer, and come as U.S. President Donald Trump is pushing to expand exports of the fuel. Tokyo is locked in trade negotiations with Washington, and has been trying to leverage its large purchases of American energy to reduce tariffs.
While Japan is working on increasing renewable energy and restarting nuclear power, "LNG is a key energy source from a security point of view,' Kani said. Japan's government sees the AI boom potentially lifting power demand over the next decade, and has urged the nation's private utilities to secure more LNG supplies.
All of the contracts announced by Jera have flexible delivery terms, which means shipments can be sent elsewhere if Japanese demand weakens. Jera has been developing its LNG trading capabilities over the last decade, and often resells its supply to Europe or other Asian buyers.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
5 minutes ago
- Japan Times
Sumitomo Realty seeks office sale after Elliott takes stake
Sumitomo Realty & Development, the Japanese developer facing pressure from Elliott Investment Management to boost its value, is seeking to sell a group of office properties in Tokyo for at least ¥100 billion ($700 million), according to people with knowledge of the matter. The developer has earmarked 19 midsize office buildings for the divestment. It has asked real estate investment firms and agencies to estimate the value of the offices, which it is considering selling separately, the people said, asking not to be identified because the matter is private. It is also weighing the sale of eight rental apartment buildings in the city, they said. Shares of Sumitomo Realty jumped as much as 6% and closed 2.4% higher at ¥5,838 in Tokyo on Thursday. Sumitomo Realty said in a statement that it is not true that it is considering selling the 19 office buildings. The company also said it plans to reduce nonprime assets to improve asset efficiency in line with its midterm business plan. After taking a stake in Sumitomo Realty, Elliott said this week that the Tokyo-based company should do more to improve shareholder returns and corporate governance. The sale plans mark a shift from its business model of developing properties in-house, holding them for the long term, and earning steady income from tenants, toward a strategy targeting capital gains. In a rare public letter, Elliott said it would vote against Sumitomo Realty's senior management at an annual shareholder meeting on June 27 if no meaningful progress is made on improving its value. Elliott said the company is one of the most undervalued real estate developers in Japan, assessing that its stock is worth at least ¥8,000, based on the valuation of its real estate holdings and peer companies. It called on the developer to unwind its cross-shareholdings, increase its shareholder payout ratio to 50% or more and target a return on equity of at least 10%. Elliott has built up more than a 3% holding in the company, according to the letter.
Kyodo News
an hour ago
- Kyodo News
Trump says U.S. Steel controlled by him with "golden share"
By Takuya Karube, KYODO NEWS - 4 hours ago - 06:50 | All, World The United States has a "golden share" in United States Steel Corp., President Donald Trump said Thursday, adding it will be controlled by him after Nippon Steel Corp.'s massive investment in the iconic American producer. "We have a golden share, which I control, or a president controls. Now I'm a little concerned whoever the president might be, but that gives you total control," Trump said at a White House event. Trump also said, "It's 51 percent ownership by Americans." But he did not provide details on how the deal between the major Japanese steelmaker and the struggling American company is structured, leaving investors and many other people confused. A golden share is a type of stock that gives veto power over major management decisions, such as approving or rejecting board members and slashing production capacity. But it was not immediately clear how such a share would allow a controlling stake in U.S. Steel to be owned by Americans. Nippon Steel has sought to make U.S. Steel a wholly owned subsidiary. The $14.1 billion takeover bid was announced by the two in December 2023. However, then President Joe Biden came out strongly against the plan. In early January this year, he issued an order blocking the sale of U.S. Steel to the Tokyo-headquartered company, citing national security grounds, following a recommendation by a panel of federal agencies. During the 2024 presidential election cycle, Trump also opposed the takeover, repeatedly saying U.S. Steel should remain in domestic hands, a view shared by the leadership of the powerful United Steelworkers union. On Thursday, Trump said Nippon Steel is a "great company" that will spend "$17 billion" on U.S. Steel, and unlike some other types of businesses, "We can't put it on a trailer and drive it into Japan," referring to the steel industry. In April, Trump ordered the Committee on Foreign Investment in the United States to conduct another review of Nippon Steel's takeover bid. With the review now complete, Trump needs to decide whether to formally approve Nippon Steel's set of buyout proposals. In late May, a senator from Pennsylvania, where U.S. Steel is headquartered, said the Japanese company had pledged to ensure most board members in the American producer would come from the United States. As a condition for permitting Nippon Steel to partner with U.S. Steel, Pennsylvania Sen. Dave McCormick told CNBC that the U.S. government is poised to receive the special type of stock. "The control structure is going to be somewhat unique. It's a national security agreement that will be signed with the U.S. government," the Republican senator said. "There'll be a golden share that will essentially require U.S. government approval of a number of the board members, and that will allow the United States to ensure production levels aren't cut." During a speech at a U.S. Steel plant in Pennsylvania on May 30, Trump heaped praise on Nippon Steel over what he views as its partnership deal with U.S. Steel, and offered backing for the Japanese company's $14 billion investment into the American producer. At the time, he also said, "Most importantly, U.S. Steel will continue to be controlled by the USA." Related coverage: Trump's steel tariff hike not raised in Japan-U.S. talks: negotiator Many see continued cuts in bond buying as appropriate: BOJ chief Ueda Japan PM hopes for progress in U.S. tariff talks, in no rush for deal
NHK
3 hours ago
- NHK
Trump: 'We have a golden share' in US Steel
US President Donald Trump has indicated that his country's government has a "golden share" in US Steel as part of a deal for Japan's Nippon Steel to acquire the American company. The holder of a golden share can veto selections and dismissals of board members and other important matters related to a company that has issued it. Trump spoke at the White House on Thursday. He said, "We have a golden share, which I control, or the president controls." He added, "It's 51-percent ownership by Americans." Trump is also believed to have referred to Nippon Steel when he said: "We have a company, great company. They're coming in from Japan. They're going to spend 17 billion dollars." Trump is believed to have revealed the amount of money Nippon Steel plans to invest in US Steel. It marked a rise of 3 billion dollars from the figure he disclosed during a speech in the eastern state of Pennsylvania on May 30. It remains unclear where the increase came from. Nippon Steel has been aiming to turn US Steel into a wholly owned subsidiary under the buyout plan. In January, then-US President Joe Biden blocked the plan, citing national security concerns. But in April, Trump instructed the Committee on Foreign Investment in the United States to conduct a fresh review. The committee finished its reexamination and reported it to Trump. A decision is expected soon, as the contract between the two companies is due to expire on Wednesday.
