- VG +3.48% TKGSF 0.00%
Venture Global has agreed to supply Tokyo Gas with 1 MTPA of LNG for 20 years under a new sales and purchase agreement.
Venture Global and Tokyo Gas have entered into a 20-year LNG Sales and Purchase Agreement that will see the Japanese utility procure 1 million tonnes per annum of U.S. LNG starting in 2030.
The deal marks Venture Global’s fourth long-term contract with a Japanese buyer and brings its contracted volumes in 2025 to 7.75 MTPA, underscoring accelerating demand from Asian utilities for long-duration supply amid continued supply-tightness and energy security concerns.
Tokyo Gas, Japan’s largest city-gas provider, has been expanding its global LNG portfolio as the country leans on long-term procurement to stabilize pricing and hedge against spot-market volatility. U.S. volumes continue to play an increasingly central role in Japan’s import strategy, with this agreement further deepening U.S.–Japan energy trade ties.
For Venture Global, the contract strengthens its position as one of the fastest-growing LNG exporters in the United States. The company now has more than 100 MTPA of capacity in production, construction, or development, anchored by its Louisiana-based Calcasieu Pass, Plaquemines LNG, and CP2 projects. The new SPA will support future Phase 2 expansions and the company’s integration strategy, which spans LNG production, transport, shipping, regasification, and in-development carbon-capture projects.
The agreement reflects a wider trend of Japanese buyers locking in long-term U.S. LNG, following similar deals between Gulf Coast exporters and major Japanese utilities over the past two years. With Japanese LNG demand expected to remain structurally high despite nuclear restarts and renewables growth, Tokyo Gas continues to diversify upstream exposure across multiple basins.
By Charles Kennedy for Oilprice.com
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