Iran Conflict Keeps LNG Prices Elevated, Tokyo Gas Warns

Tokyo Gas is warning that prolonged conflict in Iran could keep liquefied natural gas (LNG) prices elevated. The Middle East conflict has significantly tightened supplies on the spot LNG market, said Go Soga, an executive officer for Tokyo Gas.

The company, Japan's biggest city gas provider and one of the country's largest buyers of LNG, operates an LNG trading company in Singapore with offices in London and Tokyo. It aims to expand its trading business into a growth driver, targeting annual trading volume of 5 million metric tons by 2030.

Tokyo Gas reported a 65% decline in April to June net profit due mainly to the absence of one-off gains booked a year earlier. However, higher selling prices for its U.S. shale gas business helped boost revenue.