MILAN, Sept 11 (Reuters) - Tokyo Gas ( TKGSF ) is working

to build a geographically and contractually diverse liquefied

natural gas to withstand market volatility, but securing

flexible supply remains a challenge because it is in high demand

from both buyers and sellers, a senior executive said.

"Sellers are becoming more like portfolio players - they

want to optimise their supply. And as a buyer, we like to

optimize our assets. Everyone is on the same page," said Yumiko

Yao, General Manager for LNG at Japan's top city-gas supplier,

speaking on the sidelines of the Gastech conference in Milan.

Buyers globally are seeking flexible LNG supply options as

conflict between major political powers worldwide causes price

volatility and market uncertainty.

In Japan, the world's second-largest LNG importer, demand is

expected to rise due to increasing power requirements from data

centres. However, questions remain over the country's ability to

meet carbon neutrality targets and the pace of restarting

nuclear plants, leaving demand projections uncertain.

Yao added that diversification in geography and price index

is important, with Tokyo Gas ( TKGSF ) seeking destination-free cargoes,

or some control over the volumes it receives.

"We are communicating with several project owners at the

moment, and some of the discussions are advancing," Yao said,

declining to identify which companies Tokyo Gas ( TKGSF ) is speaking to

as talks are confidential.

Last month, Reuters reported that Tokyo Gas ( TKGSF ) was in

discussions with Venture Global ( VG ) to purchase 1 million metric

tons per year of LNG from the company's CP2 export facility for

20 years.

Reuters earlier this year also reported that Tokyo Gas ( TKGSF ),

along with JERA and Saudi Aramco-backed MidOcean Energy, held

talks with Australia's Woodside Energy for stakes in its

Louisiana LNG plant.

Yao said that while Tokyo Gas ( TKGSF ) is primarily focused on

securing offtake agreements, it is open to equity stakes in

projects if it aligns with its supply strategy.

Yao said that political risks and weather patterns remain

the biggest challenges facing the LNG market, and that Tokyo Gas ( TKGSF )

would have to consult the Japanese government if it wanted

Russian LNG in its portfolio should Russia's war in Ukraine end.

"We have to consider, and we have to consult our government

too, because it's such a sensitive matter. We have to see what

the circumstances are in the world, geopolitical risks, and of

course, consult these with the government."