Iran Halts LPG Exports to Japan

Iran Halts LPG Exports to JapanIran Halts LPG Exports to Japan

Iran said on Wednesday it has stopped the export of liquefied petroleum gas to Japan, but there were other customers available to buy the Islamic Republic's LPG.

"Our LPG exports to Japan have stopped ... At present, insurance issues and supply of LPG carriers have been almost resolved," Mehr News Agency quoted Ahmad Mahdavi, the head of the Association of Petrochemical Industry Corporations, as saying, Reuters reported.

"There are no limitations for the export of LPG in the post-sanctions era ... A myriad of customers are calling for Iran's LPG to the extent that demand exceeds the supply."

Mahdavi noted that one major obstacle facing LPG exports has been the supply of ships. "Since the removal of sanctions, some buyers of Iran's LPG have managed to receive the product through their own LPG carriers," he said. International sanctions against Iran's nuclear program were lifted in January after an agreement was reached with six world powers in July 2015.

International companies, particularly the Japanese, have expressed interest and readiness to boost trade with Iran. Japan lifted sanctions on Iran in January. Some international shipping companies have remained reluctant to handle Iranian exports because of remaining US restrictions on Tehran that prohibit trade in US dollars or the involvement of US firms, including banks and reinsurers.