Prolonged Iran War Could Keep Spot LNG Prices High: Tokyo Gas

Tokyo Gas, Japan's largest city gas provider, is bracing for prolonged Iranian conflict, which could keep spot liquefied natural gas (LNG) prices high. An executive at Tokyo Gas said that supplies on the LNG market have been significantly tightened since the war began, and this upward pressure on prices might persist if it drags on.

Go Soga, an executive officer for Tokyo Gas, mentioned that the company aims to 'optimise supply and demand through our global LNG trading capabilities' in order to push trading into a core growth driver. They aim to reach an annual trading volume of 5 million metric tons by 2030, with current trading volume reaching the high-4 million-ton range.

The utility's first-quarter earnings were weakened due to the absence of one-off gains from last year. However, revenue was supported by stronger prices in its U.S. shale gas business, where the average Henry Hub gas price rose to about $5 per million British thermal units in the first quarter, up from $3.6 a year earlier.