Japan's largest power producer Jera has secured sufficient LNG supplies to meet domestic demand through to July, despite the ongoing conflict in the Middle East and disruptions to shipments of the fuel via the strait of Hormuz.
Jera has adequate LNG stocks through July, Masato Otaki, head of the financial strategy and planning division, said at a financial results call on 27 April. Jera aims to make full use of the trading capabilities of its trading arm Jera Global Markets to ensure stable fuel procurement, he added.
The company declined to comment on how it had secured alternative cargoes, whether through the spot market or by increasing intake under term contracts to offset supply suspension from the Middle East. Jera currently holds a term contract with state-owned Qatargas to buy 700,000 t/yr of LNG through 2028, before entering a separate 27-year offtake deal with state-owned QatarEnergy for a 3mn t/yr starting in 2028.
Concerns are also growing over LNG exports from the 9.3mn t/yr Ichthys LNG project in northern Australia because of a potential strike, which could add to disruptions from the Middle East. Jera will consider and implement response measures on a case-by-case basis, because strikes can in some cases be resolved within a limited period, among various other outcomes, Otaki said.
Jera is Japan's largest LNG importer, using 22.35mn t for power generation in the April 2025-March 2026 fiscal year, the company said. This accounted for 34pc of the country's total LNG imports of 65.3mn t over the same period, according to the preliminary customs data. Jera's LNG consumption edged down 0.4pc from a year earlier in 2025-26, possibly reflecting higher thermal efficiency, while gas-fired generation rose by 0.7pc to 170.9TWh during the same period.
Jera also burned 20.94mn t of coal to produce 57.8TWh of electricity in 2025-26, which was up by 2pc and 2.5pc respectively from a year earlier.
