Tokyo Gas to Steer More Than Half of Overseas Investments to US in Next 3 Years, CEO Says

Reuters

11:15 JST, December 15, 2025

TOKYO, Dec 15 (Reuters) – Tokyo Gas 9531.T, Japan’s top city gas provider, plans to direct more than half of the 350 billion yen ($2.3 billion) it has earmarked for overseas investments over the next three years to the U.S. to drive growth, CEO Shinichi Sasayama said.

In October, Tokyo Gas unveiled a plan to invest up to 1.3 trillion yen in the years to March 2029, including 350 billion yen for overseas projects such as U.S. shale gas development.

“North America is our top priority in our overseas strategy,” Sasayama told Reuters in an interview last week, citing both rising U.S. domestic gas demand – driven by surging power needs for data centers and semiconductor plants – and growing demand for liquefied natural gas 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 said.

Tokyo Gas is also open to further investments in liquefaction plants or gas purchase agreements, depending on terms, Sasayama added.

The Japanese utility has been expanding its U.S. shale footprint, acquiring Rockcliff Energy in Texas and Louisiana in late 2023, and in April this year buying a 70% stake in east Texas gas assets from Chevron CVX.N.

Tokyo Gas, Japan’s second-biggest LNG buyer, has a long-term contract to procure 1.1 million metric tons of LNG annually from Russia’s Sakhalin-2 project.

Japan has continued imports under 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 said, adding the risk of an immediate supply 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 bought 11.56 million tons of LNG in the fiscal year ended March 31, 2025, with nearly half sourced from Australia, which is set to issue a gas market review that could curb exports of LNG from its east coast.

Sasayama said the Australian projects Tokyo Gas buys from are diversified beyond the east coast, limiting potential risks.