Venture Global to supply 1mtpa of LNG to Tokyo Gas for 20 years

VG +1.83% TKGSF -31.33%

Venture Global and Tokyo Gas have executed a new liquefied natural gas (LNG) sales and purchase agreement, under which Tokyo Gas will receive one million tonnes per annum (mtpa) of LNG from Venture Global for a 20-year period, commencing in 2030.

This long-term LNG supply agreement brings the sales and purchase agreements (SPAs) that Venture Global has signed in the past six months up to 7.75mtpa. The financial terms of the agreement between the companies have not been disclosed.

Tokyo Gas is the largest city gas supplier in Japan. The company maintains a diverse energy portfolio, which includes LNG procurement, power generation and investments in renewable energy.

Venture Global, a US producer and exporter of low-cost LNG, currently claims to have more than 100mtpa of capacity in production, under construction or in development.

In 2022, Venture Global started LNG production from its first facility. The company operates a vertically integrated business model, with assets spanning LNG production, natural gas transport, regasification and shipping.

Its initial three projects – Calcasieu Pass, Plaquemines LNG and CP2 LNG – are situated in Louisiana along the Gulf of Mexico.

Venture Global is also focused on the development of carbon capture and sequestration projects across each of its LNG sites.

Commenting on the deal with Tokyo Gas, Venture Global CEO Mike Sabel said: “With nearly 8mtpa of new long-term commitments signed this year, Venture Global is pleased to build on our commercial momentum through this new partnership with Tokyo Gas.

“Tokyo Gas is a pioneer in the LNG industry and leading provider of natural gas to Japan, and we look forward to working with them as we grow our position as a top LNG supplier to Japan. This agreement will contribute significantly to the US-Japan balance of trade over the duration of the sales and purchase agreement, providing Japan with affordable, reliable American LNG.”

Venture Global recently applied to the US Federal Energy Regulatory Commission for a permit and approval related to the Plaquemines LNG brownfield expansion project.

The company has also requested export authorisations from the US Department of Energy for this project.

"Venture Global to supply 1mtpa of LNG to Tokyo Gas for 20 years" was originally created and published by Offshore Technology, a GlobalData owned brand.

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