TOKYO :Japan’s biggest city-gas supplier, Tokyo Gas, sees no direct impact on its liquefied natural gas (LNG) procurement from the Iran-Israel conflict, a company executive said on Wednesday.
“Since we don’t import LNG from Qatar or UAE, our LNG procurement is not directly affected at this time,” Nobuhiro Sugesawa, senior managing executive officer, told Reuters on the sidelines of the Japan Energy Summit conference.
“But we are monitoring the situation with the utmost interest,” he said, noting that escalating tensions in the Middle East could drive up LNG prices and disrupt global supply.
The Iran-Israel air war entered a sixth day on Wednesday with concerns the conflict could widen as U.S. President Donald Trump on Tuesday called for Iran’s “unconditional surrender”, despite the U.S. not being actively involved in the fighting.
Sugesawa said the utility may boost procurement from the United States, which currently accounts for about 10 per cent of its total supply, as it is viewed as an attractive source of supply.
JERA, Japan’s biggest power generator, last week announced that it had agreed to source U.S. LNG from four different providers.
Regarding the Alaska LNG project, Sugesawa said Tokyo Gas is interested, noting its historical significance as the company’s first-ever LNG imports came from Alaska more than 50 years ago.
However, he added that the company would need to assess specific conditions, including economic feasibility, before moving forward.
The company mainly buys LNG from Australia, along with Malaysia and Russia.
