JERA CEO Warns LNG Prices Have Further to Climb

The biggest Japanese LNG importer and largest power producer, JERA, does not expect the shipping hurdles for Qatari supply at the Strait of Hormuz to end in time for the winter. “We don’t expect Qatar LNG coming back to the market soon,” Yukio Kani, chairman and global chief executive officer of JERA, told Bloomberg TV in an interview on Friday. State-owned QatarEnergy has just extended the force majeure on LNG deliveries to Asia and Europe by another month through the end of November, as LNG cargo traffic through…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.