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

JERA, Japan's biggest power generator and top LNG buyer, handles about 35 million metric tons annually of imports and trading, with roughly 27 million tons used domestically. About 5% of its 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. JERA's trading arm leverages its capabilities to swap, buy, or sell LNG through the spot market. The Strait of Hormuz carries around 20% of global fossil fuel supplies. Otaki noted that procurement strategy will need to adjust depending on the duration of the blockade. In February, JERA signed a 27-year deal with QatarEnergy for 3 million tons per annum from the North Field South expansion project, starting in 2028. Otaki emphasized monitoring contract implications from the conflict, including construction delays. Regarding a potential strike at Inpex's Ichthys LNG facility in Australia, Otaki said JERA would respond case by case. JERA's profit for the fiscal year ending March rose 5.2% to 193.5 billion yen ($1.21 billion), driven by reduced fuel procurement costs and growth in overseas power generation and renewable energy. The company did not disclose its profit forecast for the current fiscal year due to uncertainty in commodity markets and fuel procurement.