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Tokyo Gas ( TKGSF ) in talks to buy LNG from Venture Global's ( VG ) CP2

plant

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Venture offering LNG at lower prices than most competitors

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Company also offering CP2 customers short-term LNG from

Plaquemines plant

By Curtis Williams and Marwa Rashad

HOUSTON/LONDON/TOKYO, Aug 25 (Reuters) - Tokyo Gas ( TKGSF )

is in discussions with Venture Global ( VG ) to

purchase 1 million metric tonnes per annum of liquefied natural

gas from the company's CP2 export facility, three people with

knowledge of the talks told Reuters on Monday.

Venture Global ( VG ) is the second largest U.S. LNG exporter and

since 2023 has been the main source of the country's growing LNG

export capacity, helping the U.S. remain the world's largest

exporter of the superchilled gas.

Tokyo Gas ( TKGSF ) is negotiating the purchase of LNG from Venture

Global ( VG ) on a 20-year contract, two of the three people told

Reuters. The LNG is expected to come from the second phase of

the CP2 export facility, which is scheduled to come online by

the end of 2028, the three people said.

"We are exploring various projects, including those in the

United States, to secure new LNG supplies, but we cannot comment

on the status of individual projects," Tokyo Gas ( TKGSF ) told Reuters in

a statement on Monday.

Venture Global ( VG ) was not immediately available for comment.

CP2 is expected to be the second largest LNG plant in the

U.S., with a capacity to export 28 mtpa. When constructed, it

will make Venture Global ( VG ) the largest U.S. LNG exporter.

Since April, Venture Global ( VG ) has signed 20-year sales and

purchase agreements for the project with Petronas and

Eni, and expanded its long-term sales deal with

Germany's SEFE.

The three new agreements bring the total contracted volume

for CP2 up to 13.5 mtpa, CEO Mike Sabel told an earnings call

earlier this month.

Venture Global ( VG ) has been offering LNG at prices lower than

the market, two of the people said.

"They are putting pressure on the market because they are

offering LNG at liquefaction fees of $2.35 per mmBtu (million

British thermal unit) when some in the market are asking for

between $2.50 and $2.75, making it hard to resist," one of the

three people told Reuters.

Venture Global ( VG ) is also offering uncommitted cargoes on

short-term contracts from its Plaquemines export plant to

potential CP2 buyers, allowing them to access LNG at an earlier

date, a second person told Reuters.

Plaquemines, also in Louisiana, is Venture Global's ( VG ) 27.2

mtpa LNG facility and is in its final stages of construction. It

is the second-highest producing LNG facility in the U.S. behind

Cheniere's Sabine Pass export facility in Texas.