The possible disruption comes at a time when Japan and many other countries in Europe are scrambling to ensure gas supply for the peak winter demand season as they face the threat of an energy cut-off from Russia amid the war in Ukraine.
The force majeure was due to a leak on the Sabah-Sarawak Gas Pipeline on Sept. 21, the Mitsubishi spokesperson said, adding it was assessing the impact from the action.
"We have already strongly requested that Malaysia LNG take all possible measures to examine and respond to the impact," he said.
"We will closely monitor the situation and provide full support to Malaysia LNG in order to minimize the impact on the Japanese market," he said, adding there would be limited impact on its earnings.
The spokesperson declined to give details such as the dates of declarations and volume of the supply that may be affected or how long the supply disruption could last.
We are in a tight supply environment so every pipeline or processing facility interruption makes global headlines. Nevertheless, there is still potential that the explosion at the Freeport terminal in Texas, the Nordstream pipeline explosion and the Petronas leak are related events. Regardless of whether these events are the result of malicious intent, the argument for any measure that supports energy independence is more convincing than ever.
The Global X Uranium ETF is steady in the region of the 200-day MA but is unlikely to immune from wider selling pressure in the near term.