Iran Crisis Forces Japan to Rethink Its Energy Supply Chain,
Reuters – Mar 18, 2026
Middle East LNG supply no longer reliable. (full article below)
Japan’s biggest power generator JERA is already planning for a world without reliable Middle East LNG supply. With Qatar declaring force majeure on shipments after missile strikes on its core processing facility, and the Strait of Hormuz carrying 20% of global fossil fuel supply, Japan’s energy executives are navigating a crisis with no easy exits.
The decisions being made right now include emergency procurement and negotiations, as well as North American supply pivots. These are all happening in English, in real time, with international partners and investors watching closely.
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Tokyo March 18, 2026: A prolonged U.S.-Israeli war with Iran could push buyers to non-Middle East suppliers such as the U.S. and Canada, said a senior executive at Japan’s biggest power generator JERA, as the conflict spreads to energy infrastructure across the region.
“With 90 million metric tons from the Middle East absent from the global LNG market, the longer this persists, the greater the impact,” Senior Managing Executive Officer Ryosuke Tsugaru said in an interview on Wednesday.
Later on Wednesday, Qatar, the world’s second-largest LNG exporter, said Iranian missiles had hit Ras Laffan, the site of its core LNG processing operations, causing “extensive damage”.
JERA on Thursday declined to comment on the attack.
As the conflict continues, spot prices are likely to surge and volatility increase, while the crisis underscores regional risk and could spur sourcing or investment in projects elsewhere, Tsugaru said in the Wednesday interview.
Japan’s biggest LNG buyer handles roughly 35 million tons of the super-chilled fuel annually, of which around 27 million tons is used domestically.
About 5% of its shipments to Japan pass through the Strait of Hormuz, where the three-week-old war has disrupted shipping. The strait runs alongside Iran and carries around 20% of global fossil fuel supply.
Earlier this month, Qatar halted production at its 77 million ton-per-annum (mtpa) LNG plant and declared force majeure on shipments. The plant sits across the Persian Gulf from Iran which has targeted U.S. interests and energy infrastructure.
JERA in February signed a 27-year deal with QatarEnergy for 3 mtpa from the North Field South, the second phase of a massive expansion project. If the war drags on and work on the expansion stalls, deliveries to JERA could be delayed beyond their 2028 schedule, Tsugaru said.
“Our exposure to the Middle East is not significant … but we are considering additional spot purchases to address certain cargo shortfalls,” Tsugaru said, adding JERA has not received any emergency procurement requests from domestic utilities.
About 5% of its shipments to Japan pass through the Strait of Hormuz, where the three-week-old war has disrupted shipping. The strait runs alongside Iran and carries around 20% of global fossil fuel supply.
Earlier this month, Qatar halted production at its 77 million ton-per-annum (mtpa) LNG plant and declared force majeure on shipments. The plant sits across the Persian Gulf from Iran which has targeted U.S. interests and energy infrastructure.
JERA in February signed a 27-year deal with QatarEnergy for 3 mtpa from the North Field South, the second phase of a massive expansion project. If the war drags on and work on the expansion stalls, deliveries to JERA could be delayed beyond their 2028 schedule, Tsugaru said.
“Our exposure to the Middle East is not significant … but we are considering additional spot purchases to address certain cargo shortfalls,” Tsugaru said, adding JERA has not received any emergency procurement requests from domestic utilities.
