The Japanese government has asked insurers to take on additional risks to continue providing marine war insurance for liquefied natural gas (LNG) shippers in Russian waters, a senior official at the industry ministry said, Report informs referring to Reuters.
The Financial Services Agency and Agency for Natural Resources and Energy made the rare request in a joint letter to the country's general insurance association. Tokyo wants to ensure Japan will continue to import LNG from the Sakhalin-2 project in Russia.
"The FSA and ANRE have asked insurers to take actions to continue offering marine war insurance for the shipowners to transport LNG from Sakhalin-2 as it is key for Japanese energy security," the official said.
The move comes after Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance and Mitsui Sumitomo Insurance on Friday told shipowners that they would stop offering marine war insurance, which covers damage to ships from war in Russian waters, from January 1.
The decisions came as reinsurance companies warned they would no longer take on vessels' risks related to war.
But the three companies said they are in talks with other reinsurers to offer cover. read more
The Sakhalin Island complex in Russia's Far East, partly owned by Gazprom and Japanese trading houses, accounts for 9% of Japan's LNG imports.
"Securing LNG is the top priority for the government, and we asked insurance companies to cooperate in this regard," an official at the FSA said.