Cheniere Energy, Inc. and Japanese power producer JERA Co., Inc. have entered into a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) that will strengthen energy security ties between the United States and Japan for decades to come.

Under the agreement, JERA will purchase approximately 1.0 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee.

“We are pleased to enter into this multi-decade agreement with JERA, the largest power producer in Japan and one of the largest buyers of LNG in the world,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “This SPA fortifies our longstanding relationship with JERA, which is based upon years of cooperation and mutually beneficial LNG trade.”

“This long-term agreement with Cheniere—a global leader in LNG—supports JERA’s strategy to diversify and strengthen our LNG procurement portfolio, reinforcing our role as a long-term energy partner in the U.S. and deepening our commitment to securing reliable energy supplies,” added Yukio Kani, Global CEO and Chair of JERA.

The agreement represents a significant commitment to energy trade relations between the two nations. Cheniere, the leading producer and exporter of LNG in the United States, operates one of the largest liquefaction platforms in the world with facilities on the U.S. Gulf Coast. The company currently has approximately 49 mtpa of LNG production capacity in operation, with an additional 12+ mtpa of expected capacity under construction.

JERA, established in 2015, produces one-third of Japan’s electricity and is one of the world’s largest LNG buyers. The company has committed to achieving net-zero CO? emissions from its domestic and overseas businesses by 2050, making this long-term agreement part of its transition strategy.

This deal comes as global LNG markets continue to evolve, with long-term contracts becoming increasingly important for energy security amid volatile market conditions.