Japex seeks no more alternative LNG cargoes for Oct-March, raises JKM forecast

Japan Petroleum Exploration Co. Ltd. is no longer seeking alternative spot LNG cargoes for the October-March period amid the suspension of term supply from the Middle East, as the company raised its JKM price forecast for the period, Yutaka Nishimura, executive officer in charge of finance and accounting, said Nov. 12.

Japex has already secured two spot LNG cargoes for the April-September period and another LNG cargo for the October-March period.

"There will be no fourth cargo. The three replacement cargoes for Middle Eastern supplies will be the last for this fiscal year," Nishimura told an earnings press conference in Tokyo.

Japex has raised its JKM price forecast to $25/MMBtu for the October-December quarter and $20/MMBtu for January-March, up from $12/MMBtu earlier for the period, Nishimura added.

In Iraq, the Gharraf oil field resumed production in late June, and it is currently producing in the "upper 100,000" barrels/day range, but it has not been able to ship any crude cargoes to date, Nishimura said.

Japex has not factored in revenue from crude oil sales in its earnings forecast for the fiscal year toMarch 2027, Nishimura said.

Gharraf began production in August 2013 under a technical service contract with Iraq's South Oil Co. The consortium comprises Petronas, with a 45% stake, Japex Garraf, with 30%, and North Oil Co., with 25%. Japex holds a 55% stake in Japex Garraf, with state-owned Japan Oil, Gas and Metals National Corp. holding 35% and Mitsubishi 10%.