Particle.news
Download on the App Store

Tokyo Gas to Shift Most Overseas Investment to U.S., Targeting Downstream Assets

The company seeks higher returns by focusing on U.S. downstream infrastructure.

Overview

  • CEO Shinichi Sasayama said more than half of the 350 billion yen earmarked for overseas projects over the next three years will go to the U.S. starting in fiscal 2026.
  • Planned spending focuses on downstream assets in the U.S., including liquefaction plants, export terminals and energy services, to strengthen the supply chain.
  • Tokyo Gas will further develop its East Texas shale holdings to lift profitability, building on deals for Rockcliff Energy, a 70% stake in Chevron’s East Texas gas assets and a stake in Arm Energy Trading.
  • The company remains open to additional liquefaction investments or gas purchase agreements depending on terms.
  • Tokyo Gas continues LNG purchases from Russia’s Sakhalin-2 under a U.S. sanctions exemption set to expire Dec. 19, with Japan seeking an extension and the CEO describing near-term disruption risk as low.