Sumitomo’s Energy Arm May Set Up LNG Trading Desk in Singapore
(Bloomberg) -- The energy trading arm of Sumitomo Corp. is considering setting up an LNG desk in Singapore, the latest move by the Japanese company to strengthen its foothold in the seaborne market for the fuel.
Pacific Summit Energy is exploring a liquefied natural gas desk in the city-state as part of a wider strategy to expand its trading business across Asia, Europe, and the US, according to a Sumitomo spokesperson, who said they had opened a similar operation in London in August. Sumitomo’s energy trading unit has traditionally operated in North America, with offices in California, Texas and Virginia.
Japan’s trading houses have been looking to boost their LNG businesses on expectations demand will last for longer than anticipated as the fossil fuel acts as a bridge in the transition to intermittent renewables. The move also comes as Japan — the world’s second-largest LNG buyer — may need more gas in the future as the AI boom lifts power demand.
Pacific Summit is also in discussions to secure at least one long-term LNG purchase agreement for about 1 million tons per year from US projects, according to people with knowledge of the matter who asked not to be named due to the sensitivity of the matter. Sumitomo declined to comment on this.
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