Tokyo Gas Eyes Further Expansion in US Natural Gas Market

Tokyo Gas Eyes Further Expansion in US Natural Gas Market

Japan’s top city gas supplier Tokyo Gas plans to add more natural gas assets in North America after its recent acquisition of US shale gas producer.

“We would still consider investing in shale gas assets if we can acquire them at the appropriate price and in a competitive way,” said Tokyo Gas President Shinichi Sasayama on the sidelines of the Japan Energy Summit conference held on 3-5 June in Tokyo.

This goal follows Tokyo Gas’s recent acquisition of Texas-based natural gas producer Rockcliff Energy for $2.7 billion in December and its agreement to purchase a 49% stake in ARM Energy Trading, a North American energy marketing and trading firm, in February.

While focusing on North America, Tokyo Gas is also exploring opportunities in Asia.

The company is currently studying two liquefied natural gas (LNG) to power projects in Quang Ninh and Thai Binh, Vietnam, with the aim of commencing commercial operations by late 2027 and 2029, respectively.

Sasayama noted that a final investment decision for these projects is not expected before the end of the current fiscal year, which concludes in March.

The company currently purchases about 13 million metric tons of LNG annually from 13 projects across four countries.

Moreover, Tokyo Gas is adjusting its portfolio to include a mix of long-term, medium-term, and spot LNG contracts.

“We are incorporating not only long-term contracts but also term contracts of 5- or 10-years, as well as spot purchases,” Satoshi Tanazawa, the chief executive of Tokyo Gas’s energy trading company.

“We aim for a flexible structure to respond to any major changes in the business environment,” he added.

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Doaa Ashraf 458 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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