Cheniere earnings reveal $2 billion in first-half profits, ink SPA deal with JERA

Cheniere Energy, a US-based LNG producer, has announced a significant sales and purchase agreement (SPA) with Japanese energy company JERA. The announcement was made coinciding with Cheniere's quarterly and half-yearly results, which reported a net income of $2 billion and revenues of $10.1 billion in the first six months of 2025.

Under the SPA, JERA has agreed to purchase approximately 1 million tonnes per annum (mtpa) of LNG from Cheniere Marketing from 2029 through 2050. This LNG, approximately 0.85 mtpa, will be marketed by Cheniere Marketing. The gas supply agreement provides 140,000 MMBtu per day of natural gas to Cheniere Marketing for 15 years, with expected commencement in 2030.

Yukio Kani, Global CEO and Chair of JERA, expressed support for the SPA's role in diversifying and strengthening JERA's LNG procurement portfolio. He stated that the agreement reinforces JERA's role as a long-term energy partner in the US and deepens its commitment to securing reliable energy supplies.

Jack Fusco, Cheniere's President and CEO, expressed pleasure about the SPA with JERA, the largest power producer in Japan and one of the largest buyers of LNG. He stated that the SPA strengthens Cheniere's longstanding relationship with JERA, based upon years of cooperation and mutually beneficial LNG trade.

The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. This pricing mechanism provides both parties with a degree of price certainty while also allowing for market fluctuations.

The SPA comes at a time when Cheniere is expanding its production capacity. In June, Cheniere took a final investment decision with the CCL Midscale Trains 8 & 9 project, which will provide 5 mtpa additional capacity. The production capacity of CCL stage 3, comprising seven trains, rises to over 10 mtpa due to this project.

In May, Cheniere Marketing entered into a gas supply agreement with a subsidiary of Canadian Natural Resources Limited. This, along with the SPA with JERA, contributes to an over 10% increase to Cheniere's run-rate LNG production forecast.

The SPA with JERA is a testament to the growing demand for US LNG in the global market and Cheniere's position as a reliable supplier. It strengthens Cheniere's relationships in the Asian market, a key region for LNG exports, and positions the company for continued growth in the future.