Glencore to Enter Japan LNG Market

Glencore Xstrata plans to start supplying LNG to Japanese utilities this year, Dow Jones Newswire has said citing a news report in the Nikkei.

The company will focus on short-term spot trading, which will allow it to flexibly switch customers based on prices and increase earnings, the news report said. The firm will utilize its existing sales network for LNG distribution, Dow Jones reported.

Japan has seen a rise in demand for LNG as many nuclear power plants remain idle after the March 2011 earthquake.

With the Japanese market expanding, resources firms worldwide are stepping up sales of LNG in Japan, Dow Jones added. Britain's BG Group set up a Japanese branch early this year. And oil companies including BP are also boosting sales.