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Venture Global signs 20-year LNG Supply Deal with Japan's Mitsui

Venture Global announced on Tuesday that it had signed a long term agreement with Japanese trading company Mitsui for the supply of LNG at 1.0 million tons per year.

Japan, which is the second largest LNG importer in the world after China, seeks stable and flexible energy sources to support its growing data center construction.

Wood Mackenzie analysts estimate that these facilities will use the same amount of electricity as 15 to 18 million Japanese households by 2034. This is responsible for 60% of Japan's growth in power demand.

Venture Global has now signed its third agreement with a Japanese customer. The company signed a deal to supply JERA by 2023, and an agreement with INPEX by 2022.

This move will also help President Donald Trump in his efforts to increase U.S. LNG Exports. The United States is already the top exporter of super-cooled fuel and to improve the trade balance between Japan and domestic producers.

Mitsui has agreed to purchase fuel from Venture Global starting in 2029 for a period of 20 years.

The announcement was made on the same day Venture Global dropped 11% after news broke that Shell had appealed its arbitration loss against Venture Global. This came weeks after rival BP gained a similar case valued at more than $1 billion.

The two arbitration cases relate to Venture Global's failures to deliver LNG in accordance with long-term contracts, while the prices of LNG on the spot market soared following the outbreak of war in Ukraine.

Shell stated in a recent filing that while it is difficult to appeal arbitration decisions, they believe an appeal is warranted because Venture Global hid crucial evidence.

Venture Global has been signing more and more supply agreements with global energy companies. It has already secured 6,75 MTPA in long-term contracts for 2025.

The U.S. company has signed 20-year contracts with Naturgy of Spain and Atlantic-SEE Gas Trade of Greece. These agreements are in addition to those with Petronas SEFE Energy, and Eni. Reporting by Dharna Baffna from Bengaluru and Curtis Williams from Houston. Editing by Tasim Zaid.

(source: Reuters)