TG Natural Resources LLC (TGNR), a joint venture between Tokyo Gas and Castleton Commodities International, has announced the acquisition of a 70% stake in East Texas gas assets from Chevron for $525 million. The deal, confirmed on Tuesday, is part of the company’s strategy to expand its presence in the U.S. natural gas market.
As the fourth-largest producer in the Haynesville shale basin, TGNR expects the acquisition to generate significant synergies, potentially exceeding $170 million during the asset’s development, according to CEO Craig Jarchow. The Haynesville basin, located in East Texas and Northwest Louisiana, offers strategic advantages for liquefied natural gas (LNG) exports, given its proximity to Gulf Coast LNG facilities and ongoing projects.
The deal is also seen as aligning with U.S. President Donald Trump’s efforts to increase natural gas exports, a goal that has drawn attention from international investors. Tokyo Gas, Japan’s largest city gas provider, has expressed interest in further strengthening energy security by increasing LNG supplies from the U.S. to Japan.
Yoshihisa Yamada, Senior General Manager at Tokyo Gas, emphasized that the investment had been under review prior to Trump’s reelection but aligns with both countries’ broader energy strategies. “The deal supports our mutual goal of enhancing energy security by increasing LNG supplies,” Yamada said during a press briefing on Tuesday.
The East Texas assets are expected to produce 1.4 billion cubic feet of gas per day by 2030. Tokyo Gas is also exploring potential investments in U.S. LNG liquefaction facilities, although no final decisions have been made regarding these projects.
Tokyo Gas has outlined plans to boost its coordination between LNG trading and shale gas operations in the U.S., viewing shale gas as a key profit driver in the years ahead. This acquisition further strengthens the company’s position in the growing global LNG market.
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