Japan’s top power generator, JERA, said on Monday it has secured sufficient liquefied natural gas (LNG) inventories to last through July, cushioning the impact of supply disruptions linked to tensions involving Iran.
The assurance comes as shipping risks rise in the Strait of Hormuz, a key route for global energy flows, where conflict-related disruptions have affected transport. Around 5% of JERA’s LNG shipments to Japan pass through the corridor, which handles roughly a fifth of global fossil fuel trade.
Executive officer Masato Otaki said the company is relying on flexible procurement strategies through its trading arm to manage uncertainty. This includes the ability to swap cargoes, purchase spot supplies or adjust existing contracts depending on market conditions.
JERA imports about 35 million metric tons of LNG annually, with the majority used domestically to support Japan’s power needs. Otaki noted that future procurement decisions will depend on how long disruptions persist in the Middle East.
The company is also monitoring potential knock-on effects on long-term supply agreements, including its 27-year deal with QatarEnergy for LNG from the North Field South expansion starting in 2028.
Separately, JERA flagged concerns about possible supply tightness if industrial action affects the Ichthys LNG project operated by Inpex in Australia, though it said responses would be handled case by case.
For the fiscal year ending March, JERA reported a 5.2% rise in profit to 193.5 billion yen, driven by lower fuel procurement costs and stronger performance in overseas power generation and renewable energy operations.