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.

Tomas Kaberger, chair of the Tokyo-based institute’s executive board, said the crisis had underscored Japan’s exposure to supply disruptions and rising fuel costs as tensions in the region intensify.

Japan relies on the Middle East for about 95% of its crude oil imports and roughly 11% of its liquefied natural gas supplies, according to industry estimates. Around 70% of its oil shipments and 6% of LNG imports typically pass through the Strait of Hormuz, a critical global energy corridor.

The halt in tanker traffic through the strait has triggered sharp increases in fuel prices, placing additional pressure on energy-importing economies such as Japan.

“When fossil fuel imports are cut, the power plants stop and your cars stop running,” Kaberger told Reuters in an interview last week, describing the risks posed by reliance on overseas fuel supplies.

He said the current crisis involving Iran served as a reminder that fossil-fuel dependence exposes economies to geopolitical tensions and price volatility.

The renewed focus on energy security comes as Japan marks 15 years since the Fukushima Daiichi nuclear disaster, which transformed public attitudes toward nuclear power and reshaped the country’s energy policy.

Kaberger cautioned against viewing nuclear energy as a long-term solution, arguing that large centralized power plants could be vulnerable to modern military threats such as drones and precision strikes.

He pointed to damage inflicted on energy infrastructure during the Russia-Ukraine war as evidence that large facilities can be targeted during conflicts.

Instead, Kaberger said decentralized renewable systems including solar, wind and battery storage could provide stronger resilience because they distribute generation across multiple locations.

He added that advances in renewable technology have altered Japan’s long-standing perception of resource scarcity. While the country was historically considered resource-poor due to limited reserves of oil, coal, gas and uranium, falling costs of solar and wind power have shifted the landscape.

“In the 21st century, with solar, wind and battery technologies becoming the world’s cheapest forms of power generation, Japan is resource-rich,” Kaberger said.