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Press Release

JERA Enters into LNG Sales and Purchase Agreement with Centrica


JERA Co., Inc. ("JERA") is delighted to announce that it has entered into a Sales and Purchase Agreement ("SPA") with Centrica LNG Company Limited ("Centrica"), a wholly owned subsidiary of Centrica PLC, for the sale of LNG by JERA to Centrica.

The SPA is for the sale of up to six cargoes per annum to Centrica at the Isle of Grain LNG Terminal in the U.K. for a period of five years from April 2019. The price of LNG sold will be linked to European gas market price and there is volume flexibility at JERA's discretion.

The SPA enables JERA to secure flexibility to respond to LNG demand fluctuations. JERA will work together with Centrica to optimize the SPA volume, which is in line with the development of JERA’s LNG trading business.

The SPA is the result of discussions based on a Memorandum of Understanding with Centrica on collaboration in the LNG business, in such areas as utilization of LNG terminal capacity in the U.K., joint procurement of LNG and optimization of LNG vessels.

JERA will continue to secure flexibility in its LNG procurement, aiming to reduce the LNG price in Asia.

Outline of the SPA

Seller: JERA Co., Inc.

Buyer: Centrica LNG Company Limited

Contract period: 5 years

Contract volume: Up to 6 cargoes per year (approx. 0.5 million tons per year)

Delivery mode: DES