Tokyo Gas Sells Eagle Ford Shale Gas Stake to Shizuoka Gas
Tokyo Gas, Japan's largest city gas supplier, has announced the sale of its 25% stake in an Eagle Ford shale gas project in South Texas to Shizuoka Gas for $130 million. This move is part of Tokyo Gas's asset portfolio review to enhance operational efficiency.
The sale will enable Tokyo Gas to focus on its US unit, TG Natural Resources, which holds assets in East Texas and North Louisiana. Meanwhile, Shizuoka Gas marks its debut in the US upstream natural gas sector with this acquisition.
Shizuoka Gas anticipates an annual production equivalent of 400,000 metric tons of liquefied natural gas (LNG) from the Eagle Ford project. The gas produced will be marketed within the United States under the operation of Lewis Energy Group.
"With this project as a starting point, we will explore further business opportunities in the United States," stated Shizuoka Gas. The company aims to expand its overseas operations, targeting 14% of its recurring profit to be generated internationally by 2030.