Tokyo Gas CEO: More than half of investments in overseas markets will be directed to the US within 3 years.

Tokyo Gas, Japan’s largest city gas provider, will direct more than half the 350 billion yen ($2.3billion) it has set aside for overseas investments in the next three years to the U.S., according to CEO Shinichi Sasayama. Tokyo Gas announced a plan in?October to invest 1.3 trillion yen by March 2029. This included 350 billion yen to fund overseas projects, such as U.S. Shale Gas Development.

Sasayama said in an interview that "North America was our top priority" in terms of our overseas strategy. He cited a combination of a growing U.S. gas demand, driven by the surge in power requirements for data centres and semi-conductor plants, as well as a growing demand for LNG exports.

In recent years, our upstream investments in East Texas shale have increased our cost-competitiveness. He said that we will invest in the development of these assets going forward to increase profitability. Tokyo Gas will also consider further investments, subject to terms, in liquefaction facilities or gas purchase agreements. The Japanese utility is 'expanding their U.S. footprint by acquiring Rockcliff Energy, in Texas and Louisiana, in late 2023. In April of this year, they bought a 70% stake from Chevron in east Texas gas assets.

Tokyo Gas, Japan’s second largest LNG buyer, signed a long-term agreement to purchase 1.1 million tons of LNG per year from Russia’s Sakhalin-2 Project.

Japan continues to import?under an exemption from U.S. Sanctions that expires December 19. Tokyo has asked for an extension.

Sasayama added that the chances of a supply disruption occurring immediately are "quite low."

He added: "I feel the criticism has become harsher (from Western Allies), but this project contributes to a stable supply for Japan and we will continue in consultation with the government." Tokyo Gas purchased 11.56 million tonnes of LNG during the fiscal year ending March 31, 2025. Nearly half of this was sourced from Australia. Australia is set to release a review of its gas market that could restrict LNG exports from their east coast.

Sasayama stated that the Australian projects Tokyo Gas purchases are diverse beyond the east coast. This reduces potential risks.

(source: Reuters)