Osaka Gas an energy giant who mainly handles city gas is steadily growing its LNG sales business direct to unaffiliated customers. The annual volume of delivery amounts to 320 thousand tons.

The energy business division of the company shows a positive stance toward further reinforcement of the direct business, saying “The world-wide price hike of crude oil has served as a tail wind for our LNG distribution business. Particularly LNG for industrial use is expected to grow for an addition of 10 thousand tons annually during the coming years.”

LNG for industrial use competes with fuel oil A, kerosene and LPG. Based on the premise that the current import price of LNG stays at around 60 thousand yen per ton, they anticipate that LNG will be more competitive than fuel oil and kerosene owing to the price hike of crude oil.

The crude oil price rapidly rose more than usually up to the high level of 130 dollars in 2008. The price dropped back after the Lehman Shock and then gradually rose to reach a stable high price of over 100 dollar again early this year. When it comes to LPG, on the other hand, they comment that LPG price including transportation cost is well competitive although it may not be appropriate to say definitely because the CP price deflection is so wide.

Osaka Gas takes a positive stance for further reinforcement of its direct sale business from the viewpoint that the global expansion of natural gas plants and diffusion of shale gas will lead to the constant procurement and stable price of LNG in the future.