Pacific Summit Energy, the energy trading arm of Sumitomo Corp., is exploring a liquefied natural gas trading desk in Singapore as part of a strategy to expand its business across Asia, Europe, and the U.S.
The energy trading arm of Sumitomo Corp., Pacific Summit Energy, is considering setting up a liquefied natural gas (LNG) desk in Singapore, the latest move by the Japanese company to strengthen its foothold in the seaborne market for the fuel. According to a Sumitomo spokesperson, the firm 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 that demand will last longer than anticipated, as the fossil fuel serves 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 amid the AI boom lifting 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 U.S. 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.
