Venture Global and Tokyo Gas Sign 20-year LNG Supply Deal

Venture Global announced on Tuesday that it had signed a 20 year sales and purchase agreement (or SPA) with Tokyo Gas, the gas supplier for Japan's capital, Tokyo Gas. The agreement will see Tokyo Gas supply 1 million metric tons of liquefied gas per annum, beginning in 2030.

Venture Global said that this is the fourth long-term agreement it has signed with a Japanese firm. The U.S. LNG Exporter also announced in a press release that in the past six months, they have signed SPAs to purchase 7.75 million tonnes of supercooled gas per year.

According to LSEG data, Venture Global was the second largest LNG exporter in the U.S. last month. It was responsible for 30 percent of the U.S. LNG total output.

The U.S. is the largest exporter in the world of super-cooled gas.

Since the Russian invasion of Ukraine 2022, global LNG demand has surged. Buyers in Europe and Asia have secured long-term supply agreements with U.S. suppliers.

Japan, which is the second largest LNG importer in the world after China, seeks stable and flexible energy sources to support the expansion data centers.

Venture Global has signed a contract with Mitsui, which follows a previous agreement with JERA for 2023. Reporting by Pranav Mathematics in Bengaluru, Curtis Williams from Houston and Alan Barona for the editing.

(source: Reuters)