Mayer Brown advises JERA Co., Inc. on a 10-year LNG Sale and Purchase Agreement with Oman LNG LLC

Mayer Brown advised long-term client JERA Co., Inc. (JERA) on its long-term LNG sale and purchase agreement (SPA) with Oman LNG LLC (Oman LNG). Under this landmark agreement, JERA intends to purchase approximately 0.8 million tons per annum (MTPA) of LNG produced from the Oman LNG project on FOB basis over a term of 10 years from 2025. The Mayer Brown team has been extensively involved in the drafting and revising of the LNG SPA, as well as providing detailed advice on key issues and risks under the LNG SPA.

The agreement between JERA and Oman LNG will contribute to enhancing the existing cooperation between the two sides, as JERA is one of the largest importers of LNG to Japan with a significant LNG transaction volume worldwide, and Oman LNG is looking to consolidate its position in the Japanese and global LNG markets.

JERA is Japan’s largest power generation company which operates the entire supply chain, from fuel upstream and procurement to power generation. JERA intends to utilize the LNG sourced from Oman to secure a stable supply of energy in Japan and enhance its capability to respond to uncertainties in domestic LNG supply and demand.

Oman LNG operates three LNG trains in Qalhat with a nameplate capacity of 10.4 MTPA, sourcing gas from the central Oman gas field complex. The government of Oman holds 51 percent in Oman LNG while energy giant Shell has a 30 percent stake. Other shareholders include TotalEnergies, Korea LNG, PTTEP, Mitsubishi, Mitsui, and Itochu.

Nick Kouvaritakis, global head of LNG, commented: "We are delighted to have advised our long-term client, JERA, on this significant LNG sale and purchase agreement with Oman LNG. JERA is a key client of the firm and we are honoured to support JERA on this transaction as it continues its significant upward trajectory in the LNG sector."

The Singapore-based team was led by partner Nick Kouvaritakis and included counsel Nick Kendrick and associate Ling Ern Seow.