Japan-based energy firm JERA has signed an agreement with Korea Gas Corporation (KGC) that aims to reduce the uncertainty associated with liquefied natural gas (LNG) supply following Russia’s invasion of Ukraine last year.

According to the companies, they plan to discuss collaboration opportunities including LNG swaps, trading, ship optimisation and market view exchange.

The ongoing Russia-Ukraine war has caused a dramatic reduction of pipeline gas supply to Europe, with Moscow cutting off an estimated 80% of the gas it had previously piped to Europe.

“Russia’s invasion of Ukraine has created a severe energy environment and the uncertainty regarding global energy supply is drastically increasing,” said the companies in a statement.

By joining forces, the companies aim to develop new schemes of cooperation regarding LNG supply and demand to stability of energy supply in Japan and Korea.