(Bloomberg) — Tokyo Gas Co. is in discussions with multiple U.S. liquefied natural gas suppliers to secure a long-term purchase agreement, as rising energy demand leaves Japan increasingly dependent on the fuel source.
Dominion Cove Point LNG site
Japan’s largest gas distributor is in talks with at least four companies over supply from projects dotting the U.S. Gulf Coast, according to people with knowledge of the matter. The exporters include Energy Transfer LP and Commonwealth, according to the people, who asked not to be named because the information is private.
Tokyo Gas is considering various projects, including U.S. facilities, the company said, without commenting on specific projects. Energy Transfer didn’t respond to Bloomberg queries, while Commonwealth declined to comment.
The move comes as Japan prepares for a boom in power demand, thanks to data centers to support artificial intelligence and factories making semiconductor chips. The nation’s government sees LNG as vital to energy security, and Japanese importers have been in talks to purchase supply even past 2050.
LNG from the U.S. tends to be more flexible than supply from other countries, as it allows the buyer to easily divert shipments should domestic demand falter or prices become more attractive elsewhere.
Tokyo Gas is also expanding into upstream U.S. gas production. The company bought shale driller Rockcliff Energy in late 2023 and has reshuffled other U.S. interests, with the recent acquisition of Chevron Corp. assets in East Texas and the sale of an Eagle Ford stake to Shizuoka Gas Co.
