
Tokyo Gas is in advanced negotiations with multiple US liquefied natural gas (LNG) suppliers to secure a long-term supply agreement, according to sources familiar with the matter.
This strategic initiative comes as Japan faces a surge in energy demand, driven by the expansion of data centres and semiconductor manufacturing, and intensifies its reliance on LNG as a cornerstone of its energy security policy.
The company is reportedly in discussions with at least four suppliers along the US Gulf Coast, with Energy Transfer and Commonwealth among those named by individuals close to the talks.
The specifics of the negotiations remain confidential, as the companies involved have either declined to comment or not responded to media enquiries.
Japan’s government views LNG as essential for ensuring stable power supplies, especially as the country prepares for future demand that could extend well beyond 2050.
The appeal of US-sourced LNG lies in its contractual flexibility, allowing Japanese buyers to redirect shipments in response to shifts in domestic consumption or to capitalise on more favourable global prices.
This adaptability is particularly valuable as Japan seeks to diversify its energy sources and reduce vulnerability to geopolitical risks.
Beyond securing LNG imports, Tokyo Gas is expanding its footprint in the US energy sector.
In late 2023, the company acquired Rockcliff Energy, a Texas-based shale driller, and has since reorganised its US portfolio by purchasing assets from Chevron in East Texas while divesting its Eagle Ford stake to Shizuoka Gas.
In February, Tokyo Gas further broadened its regional presence with a 20 per cent stake in FGEN LNG, the operator of an offshore floating LNG terminal in the Philippines.
Japan’s pivot toward LNG accelerated after the 2011 Fukushima nuclear disaster, which led to a dramatic reduction in nuclear power generation and increased dependence on imported fossil fuels.
As the government targets a significant share of renewables in its energy mix by 2040, LNG remains a critical bridge fuel to ensure reliability and affordability during the transition.
With these moves, Tokyo Gas is positioning itself at the forefront of Japan’s evolving energy landscape, leveraging US partnerships to secure stable, flexible, and long-term LNG supplies.