EDF Trading to supply JERA with capacity requirements at Freeport LNG
On 3rd July, 2018 JERA Co., Inc (“JERA”) and EDF Trading Limited (“EDFT”) announced their intention to form an LNG optimization and trading joint venture, JERA Trading Pte. Ltd. (“JERAT”). Click here to access
In addition to this transaction, EDF Trading North America (“EDFT NA”) and JERA Energy America (“JERA EA”), an affiliate of JERA, entered into an agreement to fulfill JERA EA’s requirements at the Freeport liquefaction terminal in Quintana, Texas. EDFT NA will manage the natural gas and electric supply for JERA EA as well as provide optimization services for JERA EA’s transportation portfolio.
EDFT NA has an extensive physical and financial presence in the natural gas and power markets. It is one of the leading marketers of gas and power in North America and is well positioned to source and supply the natural gas which will be liquefied and shipped around the world by JERAT. JERA EA has a 2.3 mtpa liquefaction tolling agreement (LTA) with Freeport LNG.
“It is an opportunity to utilize our extensive US natural gas and power platform to serve a portion of this global joint venture. We look forward to working with JERA EA and our existing network of assets and enabling agreements to support this venture as we expand our natural gas presence,” said Jason Earnheart, Managing Director and Head of Origination, EDFT NA.
“This is a great opportunity for us to play such an integral role in sourcing gas from the US to supply the global LNG markets for JERA,” said John Rittenhouse, Chief Executive, EDFT. “We have access to European regasification capacities so are well equipped to provide European market access to JERA Trading when needed,” he continued.
The transaction is subject to customary regulatory approvals and is expected to be completed by early 2019.
EDF Trading North America
EDF Trading North America is a major participant in the wholesale energy markets in the US and Canada. We provide coast to coast coverage of financial and physical products in power, natural gas, NGLs, and environmental products in addition to our financial crude oil products. We provide our counterparties with products and services that deliver access to markets, optimize energy portfolios, hedge risk, and manage assets. EDF Trading operates throughout the value chain in the North American wholesale power markets and we are one of the leading wholesale natural gas marketers. Additionally, we provide environmental, congestion management and value added derivative products. With extensive pipeline agreements, we can manage natural gas offtakes, deliveries, capacities and supply across the continent. For EDF Energy Services we provide wholesale fuel supply and structured products for its extensive base of electricity and natural gas customers including gas-fired power plants, large scale commercial and industrial retail consumers and retail energy aggregators.
EDF Trading North America is part of the EDF Group, a global leader in low-carbon energies.