Tokyo Gas Acquires Chevron Gas Assets Near LNG Corridor in East Texas for $525 Million
(Reuters) — TG Natural Resources LLC (TGNR), co-owned by Tokyo Gas and Castleton Commodities International, has bought a 70% stake in east Texas gas assets from Chevron for $525 million, the company said on Tuesday, as it expands its U.S. gas business.
TGNR is already the fourth biggest producer in the Haynesville shale basin and the deal would allow it to reap synergies of over $170 million during the asset's development, Craig Jarchow, the company's chief executive, said in a statement.
RELATED: U.S. Gas Firms Refocus on Haynesville as Trump Greenlights LNG Projects
Haynesville's location in east Texas and northwest Louisiana is ideal for exports from liquefied natural gas (LNG) facilities and projects clustered on the nearby Gulf Coast, and has investors' attention as U.S. President Donald Trump aims to boost gas exports.
Yoshihisa Yamada, senior general manager at Tokyo Gas, told reporters on Tuesday that the new investment had been under consideration since before Trump's return to the office, but that the deal is in line with both countries' common aim to strengthen energy security by boosting LNG supplies from the U.S. to Japan.
The asset is expected to produce 1.4 billion cubic feet of gas per day in 2030, he said, adding that Tokyo Gas is considering investing in LNG liquefaction in the United States but no specific decisions have been made.
Tokyo Gas, Japan's largest city gas provider, said last week it wanted to increase coordination between its LNG trading and shale gas businesses in the U.S. and expand there, as it sees shale gas as a major profit pillar in the coming years.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments