AsianOil: Tokyo asks insurers to continue marine war cover for LNG carriers in Russian waters

Japan’s government has asked the country’s insurers to take on extra risk to continue providing marine war insurance for LNG carriers in Russian waters, a senior official at the industry ministry told Reuters.

Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance and Mitsui Sumitomo Insurance on December 23 told shipowners that they would stop covering damage suffered by ships in Russian wars from the start of this year. That was after reinsurance firms warned they would also no longer take on the risks of vessels incurring damage from war.

However, Japan’s Financial Services Agency and Agency for Natural Resources and Energy issued a joint letter to the country’s general insurance association requesting continued coverage for LNG tankers.

“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.

If you’d like to read more about the key events shaping Asia’s oil and gas sector then please click here for NewsBase’s AsianOil Monitor.