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Japan LPG importers see risk of tighter U.S. supply amid Middle East tensions

Published 2019-07-26, 06:11 a/m
© Reuters.  Japan LPG importers see risk of tighter U.S. supply amid Middle East tensions

TOKYO, July 26 (Reuters) -

* Japanese liquid petroleum gas (LPG) importers see a risk of prices of U.S. LPG rising and U.S. supply getting tightened in case of any supply disruptions in the Middle East, the head of the Japan LP Gas Association (JLPGA) said on Friday.

* Japan has diversified LPG sources over the past 30 years, mainly through raising imports from the United States, to reduce reliance on the Middle East to 24% in the year ended March 2019, from 77% in the year ended March 1990.

* "We have successfully diversified supply sources to cut dependence on the Middle East, unlike oil importers who still largely depend on the Middle East," Seiya Araki, chairman of the JLPGA, told a news conference.

* "But we aim to diversify sources even further in areas such as Australia and Canada as there is risk of having high reliance on the Unites States where about 70% of our supply comes from," he said, citing possibility that other LPG buyers may scramble to buy alternative gas from the United States if supply gets disrupted from the Middle East.

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