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.

Two of the sources said the state-run gas distributor bought the prompt cargo through negotiations with a European trader at a fixed price ranging between $17 and $20 per million British thermal units.

The cargo, loaded aboard the vessel Orion Hugo LNG carrier and chartered by Shell, is expected to arrive in India around March 15, according to shipping analytics firm Kpler.

There was no immediate response from GAIL (India) Limited to a request for comment.

India relies heavily on imported liquefied natural gas to meet domestic demand. The country consumes about 195 million standard cubic metres per day of natural gas, roughly half of which is met through imports.

Before recent disruptions, India was receiving about 60 million standard cubic metres per day of gas from the Middle East, according to industry sources.

Supplies have been affected following the closure of the Strait of Hormuz and the declaration of force majeure by Qatar, India’s largest gas supplier, disrupting shipments from the region.

In response, Indian authorities have begun reallocating gas supplies, diverting fuel from non-priority industries to key sectors in an effort to manage the shortfall and stabilise energy availability.

The shipments are part of a broader shift in oil trade flows as exporters and buyers respond to uncertainty surrounding the movement of energy supplies through traditional Gulf shipping lanes. Saudi Arabia, the world’s largest oil exporter, has been increasing shipments from its Red Sea facilities as an alternative route amid the heightened regional tensions.

The port of Yanbu on Saudi Arabia’s Red Sea coast has become a key outlet for crude exports during the ongoing conflict, allowing shipments to bypass the Persian Gulf and potentially vulnerable maritime chokepoints.A source familiar with the matter said Indian Oil Corp had secured cargoes from Yanbu, although details on volumes and delivery schedules were not disclosed. The move reflects efforts by refiners to diversify loading points and ensure steady supplies at a time when geopolitical risks are affecting the movement of energy commodities across the Middle East.The conflict involving the United States, Israel and Iran has disrupted oil and natural gas exports from the region, according to industry sources, prompting producers and buyers to explore alternative routes and supply arrangements.

At the same time, Russia is examining the possibility of redirecting liquefied natural gas shipments originally intended for Europe toward Asian markets, including India and China.Russia’s Deputy Prime Minister Alexander Novak said on Friday he had discussed with domestic energy companies the prospect of shifting LNG flows to other countries, according to reports by the Interfax news agency and Izvestia newspaper.A government source in New Delhi said Indian companies had previously purchased both sanctioned and non-sanctioned Russian oil after the United States granted India a waiver. The source added that India would also consider buying Russian LNG if supplies were offered.

Despite the disruption to global energy flows, Indian officials said the country’s domestic fuel market remains stable. A separate government source said there were currently no plans to raise retail prices of petrol and diesel.The official added that national fuel inventories were increasing steadily, indicating that refiners and distributors had sufficient stocks to meet demand.India is the world’s fourth-largest buyer of LNG, and authorities have in recent months rationed supplies to some industries, several of which have reported disruptions linked to tighter availability of natural gas.The adjustments by Indian refiners and policymakers underscore the wider impact of the Middle East conflict on global energy trade, with importers seeking supply flexibility while exporters recalibrate routes and destinations for crude oil and natural gas shipments.