Tokyo Gas has acquired 70% of Chevron’s East Texas gas assets for $525 million. The deal includes $75 million in cash and $450 million as capital carry, with Chevron keeping a 30% stake. Located in the Haynesville Shale near Gulf Coast LNG export terminals, the purchase aligns with Tokyo Gas‘s strategy to expand in North America. The company expects to achieve synergies exceeding $170 million during development of these strategically positioned assets.
Tokyo Gas has snapped up a 70% stake in Chevron‘s East Texas gas assets for $525 million in a strategic move to expand its footprint in North America. Chevron will keep a 30% minority stake in the assets, maintaining its presence in the region while altering focus to higher-return opportunities elsewhere.
Tokyo Gas expands its North American presence with a $525M purchase of Chevron’s East Texas gas assets while Chevron retains a strategic minority position.
The deal centers on assets in the Haynesville Shale, a gas-rich area strategically located near Gulf Coast liquefied natural gas (LNG) export terminals. This location is key for Tokyo Gas, as it connects U.S. gas supplies to global markets, especially in Asia where demand continues to grow.
As Japan’s largest natural gas utility, Tokyo Gas is working to diversify its gas supplies worldwide. This purchase strengthens the company’s position in the U.S. energy market and secures access to the growing LNG export corridor. The company, along with its partner CCI, will oversee these assets through their joint venture TGNR.
For Chevron, the sale aligns with its broader strategy to optimize its portfolio. The company aims to generate over $1.2 billion by selling non-core assets, focusing instead on high-value upstream projects. This deal marks another step in Chevron’s shift toward stronger capital discipline.
The transaction includes producing gas wells and related infrastructure that will help Tokyo Gas deliver cost-effective gas to global LNG markets. The payment structure includes $75 million in cash and $450 million as a capital carry. The company expects to achieve synergies exceeding $170 million during asset development, enhancing the overall value of the acquisition. Despite market volatility, this investment shows strong international interest in U.S. shale gas assets.
Natural gas plays an important role in global energy realignment plans, often replacing coal and oil as countries work to reduce emissions. Tokyo Gas plans to integrate these assets into its LNG-focused strategies, enhancing its ability to supply Asian markets with U.S. gas.
The deal joins a trend of international energy firms increasing their stakes in U.S. shale assets as American LNG exports become a competitive force in global markets. For Tokyo Gas, this acquisition builds on its previous investments in North American LNG and shale projects.
