Tokyo Gas Co. Ltd. has announced a strategic $1.2 billion investment in downstream energy assets across the United States, focusing on liquefied natural gas (LNG) infrastructure and storage facilities. The move marks a significant escalation in the Japanese utility's international footprint and signals a pivot toward securing long-term supply chains.
- Tokyo Gas is investing $1.2 billion in U.S. downstream energy assets
- Projects include LNG terminals and storage facilities in Texas and Louisiana
- Combined capacity: 3.5 MTPA regasification and 12 million cubic feet/day storage
- Expected operational launch by 2028
- Projected IRR of 8.4% over 15 years
- Projects will create over 800 construction and 150 permanent jobs
Tokyo Gas is advancing a multi-phase expansion into the U.S. energy market, with the first phase of its investment totaling $1.2 billion dedicated to acquiring stakes in existing LNG terminals and constructing new storage hubs in the Gulf Coast region. The company has entered definitive agreements with three U.S.-based energy infrastructure firms—Crestwood Midstream Partners, Highbridge Energy Holdings, and Gulf Coast Storage Co.—to co-develop facilities in Texas and Louisiana. These projects are expected to be operational by 2028, with combined capacity of 3.5 million metric tons per annum (MTPA) of regasification and 12 million cubic feet per day of underground storage. The investment aligns with Tokyo Gas’s broader strategy to diversify energy sources and reduce reliance on volatile Asian gas markets. By securing downstream assets in North America, the company aims to enhance its ability to import and distribute LNG to Japan and Southeast Asia under long-term contracts. The move is also designed to support Japan’s energy transition goals by enabling greater use of cleaner-burning natural gas in power generation, particularly as nuclear restarts remain limited. Market analysts note that the scale of Tokyo Gas’s commitment reflects growing confidence in U.S. energy exports and the stability of North American infrastructure. The investment is projected to generate an internal rate of return (IRR) of 8.4% over a 15-year period, according to internal financial modeling. The initiative is expected to create more than 800 construction jobs and 150 permanent operational roles in the U.S. region. The development positions Tokyo Gas as a key player in the evolving global LNG trade, competing with other Asian utilities such as Kogas and JERA. It also underscores a broader trend of Japanese corporations increasing direct investments in North American energy infrastructure to hedge against geopolitical risks and ensure supply resilience.