Page 12 - GLNG Week 01 2023
P. 12
GLNG ASIA GLNG
Tokyo asks insurers to continue
marine war cover for LNG
carriers in Russian waters
SHIPPING JAPAN’S government has asked the country’s generation, and almost all of it is imported in the
insurers to take on extra risk to continue pro- form of LNG. Furthermore, Japan is the biggest
viding marine war insurance for LNG carriers buyer of LNG from the Gazprom-led Sakhalin-2
in Russian waters, a senior official at the industry project in the Russian Far East, which covers 9%
ministry told Reuters. of the country’s overall imports. Japan receives
Tokio Marine & Nichido Fire Insurance, additional cargoes from the Novatek-operated
Sompo Japan Insurance and Mitsui Sumitomo Yamal LNG plant in the Russian Arctic.
Insurance on December 23 told shipowners that Tokio & Nichido, Sompo and Mitsui Sumi-
they would stop covering damage suffered by tomo all said on December 26 they were discuss-
ships in Russian wars from the start of this year. ing with other reinsurers to offer cover.
That was after reinsurance firms warned they “Securing LNG is the top priority for the gov-
would also no longer take on the risks of vessels ernment, and we asked insurance companies to
incurring damage from war. co-operate in this regard,” an official at the FSA
However, Japan’s Financial Services Agency told Reuters.
and Agency for Natural Resources and Energy Responding to the letter, Tokio & Nichido,
issued a joint letter to the country’s general insur- Sompo and Mitsui Sumitomo told the news
ance association requesting continued coverage agency they would continue trying to secure
for LNG tankers. more support from reinsurances for war
“The FSA and ANRE have asked insurers coverage.
to take actions to continue offering marine war Reinsurers usually renew their one-year con-
insurance for the shipowners to transport LNG tracts with insurance clients on January 1, which
from Sakhalin-2, as it is key for Japanese energy means that they have their first opportunity to
security,” the official said. reduce exposure since Moscow began its inva-
Natural gas is Japan’s biggest source of power sion of Ukraine in late February.
P12 www. NEWSBASE .com Week 01 05•January•2023
