Japan's largest power producer, JERA , has confirmed that its LNG inventory will sustain operations through July. The company signals a shift toward more flexible procurement amid Middle East tensions. The move comes as the Strait of Hormuz blockade has disrupted Gulf LNG flows, prompting Asian importers to look beyond traditional suppliers. JERA posted a 5.2% increase in profit for the 2025/2026 financial year ended March 31, 2026, even as electricity sales pricing weakened. The company secured a long‑term LNG sale and purchase agreement with QatarEnergy for 3.0 million tonnes per annum over 27 years, with deliveries slated to begin in 2028. Masato Otaki, JERA's Executive Officer and Head of the Financial Strategy and Planning Division, said, "At present, we have sufficient stock to last until July." He added that "Depending on how long the blockade continues, we will need to adjust our procurement strategy flexibly." Senior Managing Executive Officer Ryosuke Tsugaru told Reuters that "Our exposure to the Middle East is not significant" and that the company is "considering additional spot purchases to address certain cargo shortfalls." JERA did not provide an outlook for the current financial year from April 1, 2026 through March 31, 2027, due to the uncertainty in the Middle East. "Due to the recent developments in the Middle East and other factors, the outlook for resource prices and fuel procurement remains uncertain," JERA said. Amid the loss of supply from the Middle East, JERA and other Asian importers will turn to North American LNG supply, Tsugaru said last month. More buyers could be pushed to seek and contract LNG supply from producers outside the Middle East, such as the U.S. and Canada, if a prolonged war continues to choke supply from the Gulf region, Tsugaru told Reuters in March. Jera signed a long-term LNG sale and purchase agreement with QatarEnergy a month before the war erupted to secure the supply of 3.0 million tonnes per annum (MTPA) for 27 years, with deliveries expected to commence in 2028. Jera expects the start of Qatari deliveries could be delayed if the war stalls the expansion of Qatar's LNG capacity. By Charles Kennedy for Oilprice.com