US LNG developer Venture Global has entered into a
deal with Japan’s Tokyo Gas for 1mn tonnes per year (tpy) of LNG
over a 20-year period, with deliveries scheduled to begin in 2030,
the companies announced on November 30.
The supplies will be sold on a free on board (FOB)
basis, with no destination restrictions, meaning Tokyo Gas can
divert the cargoes to other markets in the event of a glut in
volumes.
Venture Global noted that the latest contract brought
the volume of long-term sales deals it has secured in the past half
a year to 7.75mn tpy. Just this November, the company signed
agreements with Japan’s Mitsui, also for 1mn tpy of LNG over a
20-year period, starting in 2029, as well as a 1mn tpy contract
with Spain’s Naturgy and a 0.5mn tpy deal with Greece’s
Atlantic-See LNG Trade, both lasting 20 years from 2030.
“With nearly 8mn tpy 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,”
Venture Global CEO Mike Sabel said. “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.”
Japan has traditionally preferenced long-term LNG
supply deals, favouring stable prices and reliable volumes over
short-term contracts and spot purchases. Natural gas accounts for
over a fifth of Japan’s energy mix and over 30% of its power
supply, with needs completely satisfied with LNG imports.
Tokyo is also under pressure to purchase more US LNG
under a trade and investment agreement reached with Washington in
late October, under which Japan committed to $550bn in investment
in US energy infrastructure, LNG, advanced fuels, grid
modernisation, critical minerals mining, processing and refining.
Signing supply contracts underpins investments in US LNG export
capacity, and thereby can support this goal.
Venture Global manages three LNG export terminals in
Louisiana. The first, Calcasieu Pass, came on stream in January
2022, followed by the second, Plaquemines LNG, in December 2024.
Calcasieu Pass’s second phase recently secured final export
authorisation for the US Department of Energy. A third stage is
under development, and Venture Global also filed this month for an
expansion of the Plaquemines project.
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