More US LNG going to Japan: Venture Global and Tokyo Gas shake hands on 20-year offtake

With another liquefied natural gas (LNG) offtake deal in the bag, the U.S. export project developer Venture Global has secured its fourth multi-year contract with a Japanese company.

Rendering of the CP2 LNG facility; Source: Venture Global via LinkedIn

Thanks to this 20-year LNG sales and purchase agreement (SPA) with Japan’s Tokyo Gas, Venture Global signed 7.75 million tonnes per annum (mtpa) of long-term contracts to date in 2025. The execution of a new LNG SPA will enable the Japanese firm to procure 1 million tonnes per annum of LNG for 20 years, starting in 2030.

Commenting on this, Mike Sabel, Venture Global’s CEO, highlighted: “With nearly 8 mtpa 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.

“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. This agreement will contribute significantly to the US-Japan balance of trade over the duration of the SPA, providing Japan with affordable, reliable American LNG.”

With over 100 mtpa of capacity in production, construction, or development, Venture Global began producing LNG from its first facility in 2022 in the United States. The company’s vertically integrated business entails assets across the LNG supply chain, including LNG production, natural gas transport, shipping, and regasification.

The company’s first three projects, Calcasieu Pass, Plaquemines LNG, and CP2 LNG, are located in Louisiana along the Gulf of America (the U.S. Gulf of Mexico). The company is also developing carbon capture and sequestration projects at each of its LNG facilities.

The latest 20-year deal comes shortly after Venture Global disclosed a similar sales and purchase agreement with Japan’s Mitsui & Co.

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