Japan Gas Utilities Warn of Demand Drop from Iran War
Japanese utilities warn that gas demand may fall if the Iran conflict disrupts naphtha supplies. Raw material shortages could force factories to cut production.
Major energy providers in Japan are cautioning that domestic gas demand could face a downturn if the conflict involving Iran continues to disrupt the supply of essential raw materials to petrochemical plants. The primary concern involves the availability of materials like those associated with Naphtha Israel Petroleum Corp. Ltd., which are vital for the production of resins and plastics used across various manufacturing sectors.
Osaka Gas Co., Ltd. President Masataka Fujiwara addressed the potential impact during a recent briefing, noting that the utility provides gas to numerous factories. If these facilities are forced to reduce their output due to a shortage of basic materials, the company's gas sales will inevitably decline.
