Japan’s Tokyo Gas Unfazed By Middle East Crisis

Despite the rising tensions in the region, Japan’s largest city gas supplier, Tokyo Gas, is not affected by the ongoing conflict in the Middle East. The company’s supply of super-chilled fuel, or liquefied natural gas (LNG), remains steady, according to a top executive. The reason for this is that Tokyo Gas does not rely on Middle Eastern exporters for its LNG supply.

Global fears have escalated due to the current conflict between Israel and Iran, with concerns that it could disrupt oil and gas supplies. The potential for direct hits on export infrastructure or a blockade of the vital Strait of Hormuz shipping lane has added to these fears. However, Tokyo Gas’ Nobuhiro Sugesawa, senior managing executive officer, has assured stakeholders that the company’s procurement of LNG is not directly impacted by these issues.

Despite not importing LNG from the Middle East, Tokyo Gas, whose exports mainly originate from Australia, Malaysia and Russia, is keeping a close eye on the situation. The conflict could cause a spike in LNG prices if it results in a supply disruption.

Qatar, the world’s second-largest LNG exporter, is most at risk of a supply disruption. The U.S. Energy Information Administration reports that about one-fifth of the global LNG trade passed through the Strait of Hormuz in 2024, primarily from Qatar. As a precaution, Qatar has advised LNG vessels to exercise caution and wait outside the narrow Strait of Hormuz until they are ready to load LNG.

This advisory is unlikely to delay shipments from Qatar to international markets according to a source familiar with the matter. Nevertheless, the situation is being closely monitored by all stakeholders, including Tokyo Gas, as the Middle East conflict continues to unfold.