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Japan’s LNG Buyers Check How Insurance Halt Will Affect Supplies

  • Three insurers will stop marine hull war coverage from Jan. 1
  • Sakhalin-2 LNG buyers include Jera, Tokyo Gas, Kyushu Electric
Jera's LNG fired power plant at the Anegasaki Thurmal Power Station in Ichihara, Japan.
Jera's LNG fired power plant at the Anegasaki Thurmal Power Station in Ichihara, Japan.Photographer: Akio Kon/Bloomberg

Japan’s buyers of Russian liquefied natural gas are assessing how imminent changes to shipping insurance — triggered by the ongoing war in Ukraine — will affect supplies from the key Sakhalin-2 project in Russia’s Far East.

Three Japanese insurance companies — Tokio Marine Holdings Inc., Sompo Holdings Inc. and MS&AD Insurance Group Holdings Inc. — will stop providing cover for marine hull war risks in Russian, Ukrainian and Belarusian territorial waters from Jan. 1, spokespeople for the companies confirmed to Bloomberg. The plans were reported by Japan’s Nikkei newspaper on Dec. 24.