The move comes as roughly 20% of global LNG supply remains offline after the conflict forced the shutdown of facilities operated by QatarEnergy, significantly disrupting energy exports from the Middle East.

JERA handles about 35 million metric tons of LNG annually, with around 27 million tons consumed domestically in Japan, according to Global Chief Executive Yukio Kani.

About 5% of the company’s shipments pass through the strategically vital Strait of Hormuz, a major energy transit corridor.Kani told reporters on the sidelines of the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo that the company is holding talks with suppliers with whom it already maintains long-term contracts to explore additional procurement options.

While there is currently no immediate shortage of LNG, Kani said the company is planning for possible prolonged disruption.“It is still possible that things could settle down within a few weeks. However, it would be far too optimistic to base our planning on that assumption,” he said.

Regional LNG prices have fluctuated sharply since the disruption. The average LNG price for April delivery into Northeast Asia was estimated at $19.50 per million British thermal units, down from $22.50 per mmBtu a week earlier, which had marked the highest level since mid-January 2023.

Energy security concerns have also resurfaced among global buyers as geopolitical tensions escalate in the Middle East.Steven Read, president of Global Coal Sales Group, which markets coal produced by U.S. mining company Signal Peak Energy, said the market had already begun to react to the heightened uncertainty.

“We’ve already seen customers coming in wanting to talk about options,” Read told Reuters on the sidelines of the conference, noting renewed interest from buyers considering additional cargoes.

If the disruption deepens and shipping through the Strait of Hormuz remains constrained, Japan may need to consider broader measures to maintain energy supply, Kani said.

These could include working with the Japanese government to encourage energy conservation and restarting dormant power stations, including coal-fired plants.At the same forum, U.S. LNG exporter Venture Global LNG said the current volatility in energy markets was likely temporary.

Chief Executive Mike Sabel said the company viewed the current price fluctuations as short-term turbulence despite the geopolitical tensions affecting supply.

“We’re tremendously optimistic about the middle- and long-term strength of the market, equity in the market, supply coming online. We expect long-term, very stable liquefaction prices,” Sabel said.

The referendum comes as the resource-rich country faces persistent economic pressure, including high inflation and recent tax increases, while navigating complex geopolitical ties with major powers including Russia, the United States and China.

Tokayev, a career diplomat who assumed the presidency in 2019, has described the proposed constitution as “a truly historic moment” that would move Kazakhstan away from what he calls a “super-presidential” system toward greater separation of powers between branches of government.

Critics, however, say elements of the reform could effectively consolidate authority within the presidency and potentially allow Tokayev to extend his political influence beyond the current constitutional limit.

Political analysts say the debate over the reforms reflects broader questions about Kazakhstan’s governance model as the country seeks to balance stability with institutional reform.

The referendum is also taking place amid speculation about Tokayev’s long-term political plans.According to a diplomatic source cited by analysts, Tokayev has been discussed as a potential candidate for the role of secretary-general of the United Nations later this year.

Political analyst Andrei Satpayev said the constitutional changes could create a vice-presidential post that might allow Tokayev to designate a successor before leaving office early if he were to pursue an international position.

Kazakhstan, a major producer of oil, uranium and other minerals, has faced economic challenges in recent months, including rising consumer prices and tax increases that have weighed on households and businesses.

The outcome of the referendum could shape the country’s political structure as it manages those pressures while maintaining its role as a key economic and energy hub in Central Asia.