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.

About JERA

JERA will broaden the scope of its business domains by investing strategically and integrating the value chain from upstream fuel investment and procurement through power generation.
JERA would also pursue the most efficient operation in fuel procurement, fuel trading and operation of the thermal power plants by expanding businesses in areas and broadening business domain, utilizing know-how of TEPCO and Chubu Electric, and optimizing the value-chain.

About Centrica

Centrica is an international energy and services company. Everything we do is focused on satisfying the changing needs of our customers. We supply energy and energy-related services to around 28 million customer accounts mainly in the UK, Ireland and North America, through strong brands such as British Gas, Direct Energy and Bord Gáis Energy supported by around 12,000 engineers and technicians.
Our Energy Marketing & Trading business operates in LNG trading optimisation and risk-management for customers. Centrica is a FTSE 50 company based in Windsor, UK.