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The
move, announced Tuesday, marks Tokyo Gas’ expansion of its U.S.
business at a time when President Donald Trump is seeking to
boost U.S. gas exports.
Tokyo Gas denies the move is in response to Trump’s policies —
the investment was being studied long before he came to office —
but an investment of this scale in the U.S. is expected to be
seen favorably by the Trump administration.
TGNR is a major gas producer in East Texas, jointly owned by TG
East Texas Resources LLC, a wholly owned subsidiary of Tokyo Gas
America, and CCI U.S. Asset Holdings.
Of the purchase amount, $75 million will be paid in cash and
$450 million used as capital to fund the Haynesville development
in Texas.
The shale gas produced on the site is for the U.S. market for
now, but exporting it in the form of liquefied natural gas to
Japan is an option for the future, according to Tokyo Gas.
Tokyo Gas is Japan’s largest provider of city-area gas,
primarily serving the Tokyo area. Besides Texas, it also has
operations in the U.S. in the Louisiana area.
“We are excited to partner with a world-class company like
Chevron on this transaction. There is considerable operational
overlap between the Chevron acreage and the legacy TGNR acreage,
which will allow TGNR to realize synergies of over $170 million
during the development of the asset,” TGNR Chief Executive Craig
Jarchow said in a statement.
Resource-poor Japan imports almost all its energy, and its main
sources for gas are now Australia and the U.S.
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