Venture Global, Tokyo Gas sign 20-yr LNG supply deal
U.S. liquefied natural gas (LNG) exporter Venture Global has signed a 20-yr deal to supply Japan's top city gas provider, Tokyo Gas, with 1 metric MMtpy of the super-chilled fuel, starting in 2030.
The agreement marks Venture Global's fourth long-term contract with a Japanese company, and the U.S. company said in a statement on Wednesday it has signed long-term LNG contracts for a total of 7.75 metric MMtpy in the last six months.
The move highlights a trend of Japan increasing its purchases of U.S. energy, as President Donald Trump pushes to expand U.S. LNG exports to support domestic producers and improve the trade balance with Japan.
Japan is back in the spotlight for LNG producers as the boom in artificial intelligence, rising costs for cleaner energy and a new national energy plan drive appetite for long-term LNG deals.
Venture Global is the second-largest U.S. LNG exporter. The U.S. remains the world's largest exporter of the super-chilled gas. Global LNG demand has surged since Russia's invasion of Ukraine in 2022, prompting buyers in Europe and Asia to secure long-term supply deals with U.S. exporters.
Japan, the world's second-largest importer of LNG after China, is seeking stable and flexible energy supplies to support the expansion of its data centers.
Japanese buyers also prefer U.S. supply because it comes without destination clauses, offering greater flexibility, and as they seek to reduce dependence on Australia and Russia.
"Through this procurement, we will diversify our LNG suppliers and secure flexible, destination-free terms, helping ensure stable feedstock procurement and expand our LNG trading," Tokyo Gas said in a separate statement.
Financial terms of the Venture Global-Tokyo Gas deal were not disclosed.
Earlier this month, Venture Global signed a 1-metric MMtpy deal with Mitsui & Co. (learn more), following an agreement with JERA in 2023.
With JERA's 5.5-metric MMtpy announcement and Kyushu Electric Power's 1-metric MMtpy, Japan's announced U.S. LNG purchases this year have reached at least 8.5 metric MMtpy. Japan imported a total of roughly 66 MMt of LNG in 2024.
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