TOKYO, Dec 15 : Tokyo Gas, Japan’s high metropolis fuel supplier, plans to direct greater than half of the 350 billion yen ($2.3 billion) it has earmarked for abroad investments over the subsequent three years to the U.S. to drive progress, CEO Shinichi Sasayama mentioned.
In October, Tokyo Gas unveiled a plan to take a position as much as 1.3 trillion yen within the years to March 2029, together with 350 billion yen for abroad initiatives resembling U.S. shale fuel growth.
“North America is our top priority in our overseas strategy,” Sasayama advised Reuters in an interview final week, citing each rising U.S. home fuel demand – pushed by surging energy wants for information centres and semiconductor crops – and rising demand for liquefied pure fuel exports.
“In recent years, we have concentrated upstream investment in East Texas shale, enhancing our cost competitiveness. Going forward we’ll invest in developing these assets to boost profitability,” he mentioned.
Tokyo Gas can also be open to additional investments in liquefaction crops or fuel buy agreements, relying on phrases, Sasayama added.
The Japanese utility has been increasing its U.S. shale footprint, buying Rockcliff Energy in Texas and Louisiana in late 2023, and in April this 12 months shopping for a 70 per cent stake in east Texas fuel belongings from Chevron.
Tokyo Gas, Japan’s second-biggest LNG purchaser, has a long-term contract to obtain 1.1 million metric tons of LNG yearly from Russia’s Sakhalin-2 undertaking.Â
Japan has continued imports underneath a U.S. sanctions exemption that expires on December 19. Tokyo has requested an extension.
“I don’t think the likelihood of it really ending there (on 19th) is particularly high at this point,” Sasayama mentioned, including the chance of a direct provide disruption is “quite low.”
But he added: “I do feel that the tone of criticism (from Western allies) has grown harsher, but since this is a project contributing to stable supply, including for Japan, we will proceed in consultation with the government.”
Tokyo Gas purchased 11.56 million tons of LNG within the fiscal 12 months ended March 31, 2025, with practically half sourced from Australia, which is about to problem a fuel market evaluation that would curb exports of LNG from its east coast.
Sasayama mentioned the Australian initiatives Tokyo Gas buys from are diversified past the east coast, limiting potential dangers.
($1 = 155.6700 yen)