Japan's biggest city gas supplier Tokyo Gas Co. said May 8 it has acquired a 30% stake in a subsidiary of Castleton Commodities International LLC, its first equity investment in a U.S. upstream company.
Tokyo Gas did not reveal the price for the stake in Castleton Resources LLC, which owns and operates over 160,000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville Shale and has a net production of about 238 million cubic feet equivalent per day, equal to 1.65 million tonnes per annum of LNG.
Castleton Commodities paid more than $1 billion to buy those assets from Anadarko Petroleum Corp. (NYSE: APC) last November.
Tokyo Gas will not receive gas offtake from the project but Castleton Resources, which is also owned 70% by a unit of Castleton Commodities International, will sell the output, Tokyo Gas officials said.
"By taking an equity stake, we can get a variety of insight and we aim to expand our business in the natural gas value chain," Isao Hosoya, Tokyo Gas' senior general manager of global business development department, told reporters.
Tokyo Gas is not considering realizing an LNG project from the joint venture because of a lack of pipeline connection to an existing LNG terminal, he said on the sidelines of a briefing on the acquisition.
Recommended Reading
At Last, AI Brings Good News for Gas Producers
2024-06-21 - Is artificial intelligence humanity’s power-hungry new friend?
TGS Gaining Ground on Subsurface Insights in the Permian
2024-06-19 - TGS released the Dynamic Matching FWI volume for the West Kermit 3D seismic survey, which spans 1,054 sq km across the Delaware Basin in Loving and Winkler counties, Texas.
AI & Generative AI Now Standard in Oil & Gas Solutions
2024-07-25 - From predictive maintenance to production optimization, AI is ushering in a new era for oil and gas.
TGS Completes Largest US East Coast Wind, Metocean Survey
2024-07-25 - TGS said the data for this project was collected from July 2022 through July 2024 and covered 600 km from Massachusetts to the Virginia-North Carolina border.
STRYDE Provides Seismic Survey Solutions Globally
2024-07-25 - Companies across various sectors look to use STRYDE’s conventional and in-field processing services for 2D and 3D seismic surveys.