Japan's LNG Giant Weighs U.S. IPO to Accelerate Global Expansion
JERA, the biggest Japanese LNG importer and largest power producer, is studying a potential listing in the United States as part of a plan to boost its international footprint, Reuters reported on Friday, quoting anonymous sources with knowledge of the matter.
The unlisted JERA has launched a feasibility study to assess potential investor demand and the U.S. market conditions and regulatory requirements, according to two of Reuters’ sources.
No plan for a U.S. listing has been finalized yet, and no decisions have been taken at JERA as the feasibility study is at an early stage, Reuters’ sources said.
While JERA has always viewed the Tokyo Stock Exchange as a primary listing venue in the event of an initial public offering, it is now considering the global New York equity markets as a potential springboard toward increasing its international operations.
Early this month, JERA took a step toward boosting its international presence by creating a wholly owned subsidiary to develop and manage its LNG, upstream, low-carbon fuels, and shipping businesses. The new company, JERA Global Energy Solutions (JERA GES), will be the Japanese utility giant’s response to increasingly volatile and complex energy markets.
JERA GES will be a vertically integrated LNG company that can quickly respond to the market needs while maintaining security of supply for Japan as its highest priority, the company said.
JERA GES, which will be headquartered in Singapore, will focus on “developing a stable and diversified long-term LNG portfolio that balances supply sources with market opportunities, while advancing lower-carbon fuels such as ammonia and hydrogen,” JERA said.
The move reflects growing efforts by major LNG buyers to separate long-term supply management from commodity trading as markets become more volatile and global demand shifts. JERA is one of the world's largest LNG purchasers and produces roughly one-third of Japan's electricity. Establishing a dedicated Singapore-based LNG platform also reinforces the city-state's role as a global LNG trading and commercial hub.
By Charles Kennedy for Oilprice.com
