Tokyo Gas Sells Eagle Ford Stake to Shizuoka Gas for $130M

Tokyo Gas, Japan’s largest city gas supplier, is selling its 25% stake in an Eagle Ford shale gas project in Texas to Shizuoka Gas for $130 million. This move aligns with Tokyo Gas’s strategy to streamline its asset portfolio and focus on TG Natural Resources, its U.S. unit with assets in east Texas and north Louisiana.

For Shizuoka Gas, this acquisition marks its entry into the U.S. natural gas sector. The deal is expected to generate 400,000 metric tons per year in liquefied natural gas (LNG) equivalent, strengthening its position in the global energy market. The project, operated by Lewis Energy Group, will sell its gas production within the United States.

Shizuoka Gas aims to expand its overseas operations, targeting 14% of its recurring profit from international ventures by 2030. The company views this investment as a stepping stone for future U.S. business expansion.

This transaction reflects a growing trend among Japanese energy firms diversifying their portfolios and increasing global investments. The LNG sector remains a key focus amid the ongoing energy transition, with companies seeking strategic acquisitions to secure stable energy supplies.

With this sale, Tokyo Gas reinforces its commitment to optimizing efficiency and concentrating resources on high-value assets, while Shizuoka Gas gains a foothold in the U.S. energy market, paving the way for future growth.