In an interesting story from Japan, JERA, the joint venture between Tokyo Electric Power Company and Chubu Electric Power, has flagged that it will begin selling LNG on to other Asian countries as domestic consumption flatlines or falls.

JERA was formed to give its two founders greater market leverage, and is still making major supply deals, even as Japan restarts some nuclear power generation (following the shutdowns after the 2011 Fukushima nuclear disaster), reducing its need for LNG. Yukio Kani, JERA’s new global chief executive officer and chairman, has told Reuters that transaction values “may decline or stay the same”, and that “Japan may not need LNG for 20 years … but other Asian countries need to replace coal with something and LNG will play an important role.”

Being the middle-man will surely provide a return to JERA, reshaping the initial purpose of the venture as it expands also into renewables and other clean power. Mr Kani also mentioned that Aboitiz Power, which operates in the Philippines and of which JERA owns a 27% stake, is also considering converting some coal-fired power stations to fire ammonia, as JERA itself is doing.