Tokyo Gas expects no direct impact on LNG buying from Iran-Israel conflict (updated)

Tokyo Gas

18/06/2025 06:15

Monitoring Middle East developments with 'utmost interest'

May increase purchase of U.S. LNG

Interested in Alaska LNG, but need to assess conditions

Adds quotes and details in paragraph 2-8

By Yuka Obayashi

TOKYO, June 18 (Reuters) - Japan's biggest city-gas supplier, Tokyo Gas 9531.T, 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% 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.

 (Reporting by Yuka Obayashi; Editing by Christian Schmollinger)

 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))