Japan’s largest power generator Jera says it is lining up a deal to develop and produce natural gas in the US state of Louisiana. The company says the 1.5-billion-dollar investment will help counter the risk of price rises in the United States.
Jera says it will sign a contract with two US gas developers. It aims to finalize the agreement by the end of this year.
The company expects the Louisiana asset to produce 3.5 million tons of liquefied natural gas annually. At this stage, it plans to sell the gas in the local American market.
Jera says this acquisition is not related to a deal reached between the two countries last month, when Japan said it would purchase 7 billion dollars’ worth of US energy a year.
The Japanese company says the takeover will allow it to substantially expand its partnerships in the United States.