Iran Crisis Spurs Shift to Non-Mideast LNG Suppliers, JERA Says

TOKYO - A senior JERA executive says a prolonged U.S.-Israeli war with Iran may push buyers toward non-Middle East LNG suppliers like the U.S. and Canada. Ryosuke Tsugaru, Senior Managing Executive Officer, noted the absence of 90 million metric tons from the Middle East would significantly impact global markets.

Qatar’s Ras Laffan facility suffered 'extensive damage' from Iranian missiles, increasing regional risks. Tsugaru emphasized surging spot prices, higher volatility, and potential delays in Qatari projects, including JERA's 27-year deal for 3 mtpa from QatarEnergy’s North Field South expansion. Deliveries could slip beyond their 2028 target if the crisis continues.

JERA plans additional spot purchases to manage shortfalls but will maintain its QatarEnergy contract. The firm is also expanding in North America, securing 5.5 mtpa of U.S. LNG starting around 2030 and hedging 60% of expected volumes against price swings. It has no plans for further upstream acquisitions but may explore more supply from LNG Canada’s expansion.

The Strait of Hormuz disruptions highlight vulnerabilities, as 5% of JERA's shipments to Japan pass through this critical route.