Tokyo Gas acquired the 25 percent interest in the Eagle Ford shale gas assets from VirTex Producing in June 2016, as its second shale gas development project in the US.
According to a statement by Tokyo Gas, the firm will sell the stake to Shizuoka Gas for $130 million as part of its plans to optimize its asset portfolio and improve asset efficiency in its US shale gas business.
With this, Tokyo Gas will focus on TGER’s (TG Eagle Ford Resources) asset in east Texas and north Louisiana.
“By streamlining its US shale gas operations and further developing its natural gas and
LNG value chain, including expanding its LNG trading business, Tokyo Gas will contribute to
stable energy supply in Japan and other countries,” the firm said.
On the other hand, this will be the first time Shizuoka Gas will participate in a business in North America and enter into the upstream natural gas sector, the firm said in a separate statement.
Shizuoka Gas plans to acquire the assets from TGER through its local subsidiary, which is scheduled to be established in 2025.
The project involves the joint ownership of interests by three companies: Lewis Energy as operator, TGER, and BP Energy.
The shale gas production volume attributable to its local subsidiary is expected to total about 400,000 tons per year (average over 20 years) in LNG equivalent, Shizuoka Gas said, adding that the produced gas is to be marketed in the US market.
Starting with this project, Shizuoka Gas will consider further business development in the US.
