U.S. liquefied natural gas (LNG) exporter Venture Global (VG) has signed a 20-year contract to supply 1 million metric tons per annum (mtpa) of LNG to Japan’s leading city gas provider, Tokyo Gas (9531), starting in 2030.

This marks Venture Global’s fourth long-term deal with a Japanese company, bringing its total long-term Japanese commitments to 7.75 mtpa over the past six months.

The agreement underscores Japan’s growing appetite for U.S. LNG, driven by rising energy costs, a national energy plan, and demand from the booming artificial intelligence sector. Japanese buyers prefer U.S. supply because it comes without destination clauses, offering flexibility and reducing dependence on Australia and Russia.

“Through this procurement, we will diversify our LNG suppliers and secure flexible, destination-free terms, helping ensure stable feedstock procurement and expand our LNG trading,” Tokyo Gas said.

Earlier deals this year include a 1 mtpa agreement with Mitsui & Co, 5.5 mtpa with JERA, and 1 mtpa with Kyushu Electric Power, bringing Japan’s total new U.S. LNG purchases in 2025 to at least 8.5 mtpa. Japan imported around 66 million tons of LNG in 2024.

The financial terms of the Venture Global-Tokyo Gas deal were not disclosed.