Japan's largest power generator, JERA, stated on July 31 that it has sufficient liquefied natural gas (LNG) inventories to cover demand through October, and does not foresee any threat to stable electricity supply even if a severe summer heatwave drives up consumption.

"We have secured enough LNG stocks for the peak summer season from August to October, and there are no concerns regarding stable power supply," Reuters quoted Masato Otaki, an executive officer at JERA, as saying during a press briefing.

As the country's top LNG buyer, JERA handles roughly 35 million tonnes of the fuel annually.

Otaki added that the company will carefully oversee stockpiles for the winter months, using its global trading division to optimise procurement. He also noted that Qatar accounts for only a small portion of its LNG supply portfolio.

When questioned about a media report suggesting JERA is considering building a large gas-fired power plant in the United States, Otaki said that North American independent power producer (IPP) activities are a core focus, and the firm is assessing multiple projects—but he declined to discuss specific proposals. 

JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, posted a net profit of 123.1 billion yen ($766 million) for April-June, a 31% rise year-on-year. It forecasts full-year net profit of 280 billion yen, an increase of 86.4 billion yen from the previous year.

Otaki attributed the stronger results mainly to improved performance in domestic thermal and gas operations, particularly in LNG and coal. Higher-than-expected wholesale electricity prices also boosted earnings, he said.

However, JERA is proceeding with the resale of long-term power purchase agreements (PPAs), including coal-fired contracts, in order to reduce costs for customers. 

"While this would weigh on our earnings, it will contribute to long-term social stability and support more steady profits from next year onward," he added.