Japanese energy company JERA and Korea Gas Corp (Kogas) have signed a memorandum of understanding to cooperate in the LNG business, including shipping.
The move is aimed at securing a stable supply of LNG to both countries following the disruption to energy markets caused by Russia’s invasion of Ukraine.
JERA said the aim of the partnership is to “enhance stable energy supply in Japan and Korea”.
“Russia’s invasion of Ukraine has created a severe energy environments, such as the reduction of pipeline gas supply to Europe, and the uncertainty regarding global energy supply is drastically increasing,” JERA said in a statement.
The threat to LNG imports to Japan caused by the Russian conflict was highlighted when reinsurers refused to provide cover for LNG exports from Sakhalin, which could have disrupted shipments. The problem has since been resolved.
Both JERA and Kogas are two of the largest buyers of LNG in the world. The pair will discuss opportunities for mutual collaboration in the LNG business including LNG swaps, trading, ship optimisation and exchanging views on the market.
JERA also pointed to the increasing role LNG will play in the energy transition and said it wanted to cooperate with Kogas and other LNG buyers to “enhance procurement capabilities”.
In 2021 JERA imported around 29.2m tonnes of LNG and employs 19 LNG carriers. Kogas imported 38m tonnes of LNG in 2021.
