Gas
Japan moves to secure LNG supplies amid Middle East disruptions
Japan is bolstering its liquefied natural gas security frameworks following Middle Eastern export disruptions and shipping constraints through the Strait of Hormuz.
Key points
- Japan and Petronas established an emergency LNG procurement framework.
- Damage to Qatari infrastructure and Strait of Hormuz transit issues restrict global supplies.
- Asian and European buyers face heightened competition and price pressures ahead of winter.
Supply risks and emergency frameworks
Japan is enhancing its liquefied natural gas supply security as ongoing conflicts in the Middle East restrict regional exports and threaten maritime transit through the Strait of Hormuz, gasworld reported. Last month, the Japan Organization for Metals and Energy Security and Petronas LNG established a framework for emergency procurement to protect domestic electricity and gas supplies.
The disruption follows March attacks that damaged two liquefaction trains at Qatar’s Ras Laffan complex, reducing the nation's capacity by roughly 17 percent. Shipping data cited by Reuters showed Qatari exports dropped sharply in September. While Japan's direct reliance on Middle Eastern imports stood at roughly 11 percent of its total 65 million tonnes imported in 2025, broader market tightness has intensified global competition for available cargoes.
Market impacts and alternative sourcing
Regional spot prices have experienced volatility, with the Japan-Korea Marker reaching high levels in September before easing. In comparison, US Henry Hub natural gas stood at 3.03 US dollars per MMBtu on 6 October, according to CEII data.
To mitigate risks, Japanese entities are diversifying their portfolios. JERA secured a 20-year agreement with Petronas in June for supplies originating mainly from Malaysia, alongside long-term commitments for North American cargoes. Meanwhile, analysts warn that European buyers will compete fiercely with Asian importers for flexible shipments as the winter season approaches.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
79.2% of electricity in Iran came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
