HomeNewsJapan's JERA secures adequate LNG stocks through July despite Iran crisis

Japan's JERA secures adequate LNG stocks through July despite Iran crisis

4/27/2026
  • FY2025 net profit rises 5.2% on lower fuel procurement costs
  • Aims to ensure stable fuel purchases by leveraging trading arm
  • JERA did not disclose FY2026 profit forecast due to market uncertainty

JERA, Japan's biggest power generator, has secured adequate liquefied natural gas inventories through July to cover Middle East supply disruptions caused by the U.S.-Israeli war with Iran, an executive said on Monday.

JERA, also Japan's top LNG buyer, handles about 35 metric MMtpy of imports and trading, of which roughly 27 metric MMtpy are used domestically. About 5% of its Japan-bound shipments pass through the Strait of Hormuz, where the conflict has disrupted shipping.

"At present, we have sufficient stock to last until July," Masato Otaki, an executive officer, told reporters. "We'll make every effort to ensure flexible fuel procurement by leveraging JERA Global Market's trading capabilities," he added, referring to JERA's trading arm.

Otaki did not comment on any specific trading actions but its trading arm has the flexibility to swap, buy or sell with other companies or through the spot market.

The Strait of Hormuz, which runs alongside Iran, carries around 20% of global fossil fuel supplies.

"Depending on how long the blockade continues, we will need to adjust our procurement strategy flexibly," Otaki said.

In February, JERA signed a 27-yr deal with QatarEnergy for 3 MMtpy from the North Field South expansion project starting in 2028 (learn more).

Otaki said JERA has not been fully informed by QatarEnergy about the full impact of the conflict, including on construction schedules, and will closely monitor any implications for procurement contracts while communicating with the supplier.

Asked about a potential strike at Inpex's Ichthys LNG facility in Australia, which could further tighten global supplies, Otaki said JERA would respond case by case.

JERA's profit for the fiscal year that ended in March rose 5.2% from a year earlier to 193.5 B yen ($1.21 B).

The increase was supported by a reduction in fuel procurement costs and a boost in JERA's overseas power generation and renewable energy business, the company said.

JERA did not disclose its profit forecast for the current fiscal year, citing uncertainty in commodity markets and fuel procurement due to the Iran crisis.

($1 = 159.3200 yen)

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