Market Chatter: Japan-Based Jera Holds Enough LNG Inventories to Meet Domestic Demand Through July
Jera, Japan's largest power generator, said it holds sufficient liquefied natural gas inventories to meet domestic demand through July, despite supply disruptions stemming from the Middle East conflict that has effectively shut the Strait of Hormuz, according to a Reuters report, citing the company's executives."At present, we have sufficient stock to last until July," Masato Otaki, the head of financial strategy and planning, told Reuters on Monday.He said that the company will take advantage of its global market trading capabilities to ensure flexible fuel procurement for the country's domestic needs.He also said that the company will adjust its procurement strategy depending on the how long the blockade in the Hormuz continues.This also comes just months after Jera signed a nearly three-decades-long deal with QatarEnergy, for 3 million tonnes per annum of LNG, from the North Field South expansion project starting in 2028. However, there is no clarity on the impact of the conflict on this deal.Jera did not immediately respond to' request for a comment on this story.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)