Ruth Liao and Stephen Stapczynski
Tokyo Gas is discussing with several US liquefied natural gas suppliers to secure long-term purchase agreements as Japan is increasingly dependent on fuel sources.
According to people with knowledge of the issue, Japan’s largest gas distributor is in discussions with at least four companies over supply from projects scattered across the US Gulf Coast. Exporters include Energy Transfer LPs and the Federation, according to those who were asked not to name the information because it is private.
Tokyo Gas is considering a variety of projects, including facilities in the US, without commenting on specific projects, the company said. Energy Transfer did not respond to Bloomberg’s question, but the federal declined to comment.
This move comes as Japan prepares for a boom in electricity demand thanks to data centers to support artificial intelligence and factory production chips. The country’s government believes LNG is essential for energy security, and Japanese importers are talking to buy supplies even after 2050.
LNG from the US tends to be more flexible than supply from other countries. This is because buyers can easily divert freight when domestic demand sets in or prices become attractive elsewhere.
Tokyo Gas is also expanding to gas production in the US. The company bought Rockcliff Energy from the Shale Driller in late 2023 and reshuffled other US profits. It recently acquired assets from Chevron in Texas and sold Eagle Ford stakes to shizuoka Gas Co.
The third paragraph will be updated with company comments.
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