HomeNewsJapex secures two LNG cargoes on spot basis as substitute for Middle East supplies

Japex secures two LNG cargoes on spot basis as substitute for Middle East supplies

4/20/2026

Japan Petroleum Exploration has secured two liquefied natural gas cargoes on a spot basis from non-Middle East areas as substitutes for those originally set to be procured from the Gulf in the April-June quarter, in response to the blockade of the Strait of Hormuz.

As a result, LNG procurement costs are expected to rise significantly from levels before the Iran crisis, the company said.

Japex normally procures LNG through term contracts to supply fuel for power generation at the Fukushima Natural Gas Power Plant.

There are no concerns that natural gas or electricity supply will be disrupted since Japex has adopted alternative procurement measures, it said.

Japex also participates in the Garraf oil field in southern Iraq, operated by PETRONAS Carigali Iraq Holding B.V. Production and shipments at the Garraf have been suspended following a force majeure declaration by the Iraqi government, with no prospect of resumption, the Japanese company said, adding revenue from the project is not anticipated.

While rising crude oil prices and a weaker yen could increase revenue and profits, higher costs from unplanned spot LNG purchases and the suspension of operations at the Garraf could bring a significant decline in profits, the company said.

Additionally, a tighter supply of chemical products used for domestic oil and gas operations could drive up operating costs. Japex is evaluating the impact of the Middle East conflict on its profits, to be reflected in its earnings forecast for the year ending March 2027 on May 13th.

There will be minimal impact on financial results for the fiscal year ended March 2026, the company added.

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