Japan Bolsters LNG Stockpiles Amid Middle East Conflict; METI Reports Sufficient Reserves Despite Strait of Hormuz Closure

Japan's LNG stockpiles reached 2.19 million tons as utilities boost reserves. METI sees no immediate supply risk despite the closure of the Strait of Hormuz.

By: AXL Media

Published: Mar 4, 2026, 3:36 AM EST

Source: The information in this article was sourced from CNA

Strengthening Energy Security in a Volatile Market

Japan, the world’s second-largest importer of liquefied natural gas, is aggressively fortifying its energy reserves as geopolitical tensions in the Middle East escalate into open conflict. On Wednesday, the Ministry of Economy, Trade and Industry (METI) revealed that domestic utilities increased their LNG stockpiles to 2.19 million metric tons during the week ending March 1. This represents a significant jump from the 2 million tons held just one week prior, reflecting a coordinated effort to insulate the nation’s power grid from the supply shocks currently rattling global energy markets.

Navigating the Strait of Hormuz Disruption

The primary threat to Japan's energy security is the closure of the Strait of Hormuz following military actions involving the U.S., Israel, and Iran. While Japan sources approximately 11% of its total LNG from Middle Eastern suppliers like Qatar, Oman, and the UAE, only about 6% of its total imports typically transit through the now-blocked strait. METI officials emphasized that because the majority of Japan's imports arrive from other regions including Australia and the United States the country remains relatively insulated from the immediate naval blockade in the Gulf.

The Role of the Strategic Buffer LNG (SBL) Scheme

To mitigate the risk of a prolonged outage, METI has activated its Strategic Buffer LNG (SBL) framework. Under this directive, JERA, Japan’s largest LNG buyer, is required to secure at least one emergency cargo per month (approximately 70,000 tons). Despite the heightened alert level, METI confirmed that no electric or gas companies have yet requested access to these emergency supplies. The ministry currently projects no immediate shortage risk, suggesting that the current inventory levels are sufficient to manage short-term volatility.