Japan’s power generation major JERA has agreed with infrastructure fund Global Infrastructure Partners to acquire 25.7% interest in Freeport LNG Development, which operates the Freeport liquefied natural gas (LNG) project in the US for $2.5bn.
JERA, through its subsidiaries, owns 25% of Freeport LNG train 1 and purchases and transports 2.32 mtpa of LNG for use in Japan and other LNG importing countries. The transaction will see JERA involved in the entire existing Freeport LNG project with three trains as well as working to advance new LNG projects including production capacity expansion and the development of train 4.
Steven Winn, CEO of JERA Americas, said: “Securing a stable supply of LNG is becoming increasingly important as we witness sharp price increases around the world. We will leverage the knowledge and expertise accumulated through JERA’s global LNG value chain business and power plant operations as we work together with Freeport on its various businesses to meet the growing demand for electricity in Asian countries and help facilitate the transition from coal to lower emission transitional fuel LNG.”
Freeport is the seventh largest LNG facility in the world, the second largest in the US, and the only US facility to use electric motor-driven technology, emitting 90% less CO2 than a comparable gas turbine-driven facility.