Key facts
- JERA has secured enough LNG supplies to cover peak summer demand through October.
- The company has reduced LNG purchases from Qatar.
- Japan is diversifying its LNG sources, increasing imports from the U.S. and Malaysia.
- A 20-year contract with Petronas for 2 million tons of LNG annually was signed.
- Japanese utilities previously increased coal generation to ensure power supply security.
Japan's largest liquefied natural gas buyer, JERA, has announced it has secured sufficient supplies to meet peak demand through October, mitigating concerns about potential summer power shortages. An executive stated that the company has enough LNG stocks for the period from August to October and that stable power supply is not at risk.
JERA has significantly reduced its LNG purchases from Qatar and is focusing on securing winter supplies through its global trading division. As one of the world's most energy import-dependent nations, Japan has been actively seeking alternative energy sources following disruptions to Middle Eastern exports. The United States has become a primary supplier of liquefied natural gas due to its lower risk profile.
To ensure a diversified fuel supply, JERA recently signed a 20-year contract with Malaysia's Petronas, with deliveries commencing in 2028. Malaysia is Japan's second-largest LNG supplier after Australia. In addition to increasing LNG imports from non-Middle Eastern countries, Japanese utilities had previously increased their reliance on coal generation to maintain energy security.