JERA Terminates 20-Year LNG Deal with Commonwealth LNG

JERA has terminated a 20-year LNG supply agreement with Commonwealth LNG, raising new questions around the Louisiana project’s commercial outlook.

(Reuters) — A long-term liquefied natural gas sales and purchase agreement entered into last year between Japan's largest power generator, JERA, and U.S. LNG developer Commonwealth LNG has been terminated, according to a document filed with the U.S. Department of Energy.

Last June, JERA, also Japan's top LNG buyer, said it had signed a 20-year SPA with Commonwealth LNG for 1 million metric tons per year from the developer's Louisiana project.

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A notification of the deal's termination, dated April 1, was filed on behalf of Commonwealth. The letter said the agreement was terminated effective March 3, without giving a reason.

Bloomberg earlier reported the termination.

JERA declined to comment, while Commonwealth LNG was not immediately available for comment.