Woodside and JERA agree winter-only LNG supply deal to boost Japan's energy security
Woodside Energy Trading Singapore and Japan's largest power generator JERA have signed a non-binding Heads of Agreement (HOA) for LNG deliveries exclusively during Japan's peak winter months, marking an unusual departure from traditional year-round supply contracts.
The agreement will see Woodside supply approximately 200,000 metric tonnes of LNG annually during December to February, starting from fiscal year 2027 for a minimum of five years.
The seasonal arrangement reflects Japan's critical energy needs during winter peak demand periods, when gas-fired power generation plays a vital role in meeting heightened consumption and balancing seasonal fluctuations. Unlike conventional term contracts covering the entire year, this targeted approach provides JERA with greater flexibility to adjust supplies based on actual weather conditions.
"This agreement not only strengthens our relationship with JERA but also reinforces the critical role Woodside plays in supporting Japan's energy security through the reliable supply of LNG," said Woodside Chief Commercial Officer Mark Abbotsford. He highlighted the timing's alignment with Woodside's expanding portfolio, including the Scarborough Energy Project, which targets first cargo delivery in the second half of 2026.
JERA Chief Low Carbon Fuel Officer Ryosuke Tsugaru emphasised the strategic importance, stating: "It is critically important for JERA to secure LNG for the high-demand winter season."
The deal builds upon existing partnerships, following JERA's acquisition of a 15.1% stake in the Scarborough Joint Venture in October 2024 and is supported by the Japan Bank of International Cooperation (JBIC) framework for enhanced energy security cooperation.
Japan's Ministry of Economy, Trade and Industry expressed hope that similar seasonal arrangements with other suppliers could further strengthen the country's stable energy procurement strategy, potentially establishing a new model for flexible LNG contracting.
