Tokyo Gas to sell US shale gas stake to Shizuoka Gas for $130 million

Shizuoka Gas

21/02/2025 09:27

TOKYO, Feb 21 (Reuters) - Tokyo Gas  9531.T , Japan's
biggest city gas supplier, will sell its 25% stake in an Eagle
Ford shale gas project in south Texas to Shizuoka Gas  9543.T 
for $130 million under an asset portfolio review to improve
efficiency, it said on Friday.
    The move will leave it to focus on its U.S. unit, TG Natural
Resources, which has assets in east Texas and north Louisiana,
Tokyo Gas said in a statement.
    Shizuoka Gas said in a separate statement that the deal
marks its first acquisition in a U.S.-based business and entry
into the upstream natural gas sector.
    The volume of shale gas production attributable to Shizuoka
Gas is projected at 400,000 metric tons per year in liquefied
natural gas (LNG) equivalent. 
    The gas produced from the project, which is operated by
Lewis Energy Group, will be sold in the United States, Shizuoka
Gas said.
    "Starting with this project, we will consider further
business development in the U.S.," Shizuoka Gas said.
    The company has set a target to expand its overseas business
to generate 14% of its recurring profit by 2030.    

 (Reporting by Yuka Obayashi; Editing by Rachna Uppal)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))