Singapore (Platts)--27Nov2012/425 am EST/925 GMT

Japan recorded city gas sales of 2.572 billion cubic meters in October, a 2.1% year-on-year increase, but down from September's 2.613 Bcm, data released Tuesday by the Japan Gas Association showed.

October gas sales were mainly propped up by sales to the industrial sector, which rose 7.8% from the previous year to 1.586 Bcm on the back of higher operation rates at the facilities.

City gas sales to utilities also increased 2.4% year-on-year to 209.6 million cubic meters in October, marking the third consecutive month of yearly gains.

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On the other hand, gas sales to households in October were 12.4% lower than a year ago at 441.4 million cubic meters as gas requirements fell with the drop in demand for hot water due to to warmer weather in September and October compared with the same period last year.

The warmer weather also resulted in lower sales to commercial businesses, which was down 1.5% from October 2011 to 334.7 million cu m, due to reduced demand for heating. A decrease in metering days compared with last year also partially contributed to the drop in gas sales to the commercial sector.

--Chloe Hang, chloe_hang@platts.com --Edited by Elston Soares, elston_soares@platts.com

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