Japanese commodity trading company Mitsubishi will buy Aethon Energy Management’s mining and infrastructure assets for USD 7.53 billion for shale gas extraction in Louisiana and Texas. The Japanese company announced this today in a press release. This is Mitsubishi’s largest acquisition in its history.
Mitsubishi strengthens its position in North America
The transaction will secure the Japanese company a significant position in natural gas production near the Gulf Coast, where energy export facilities are also currently under construction. The amount includes $5.2 billion for assets and the assumption of $2.33 billion in net interest-bearing debt. The acquisition aims to strengthen the company’s energy business in North America at a time when Japan considers gas an important transition fuel and expects growth in electricity demand due to, among other things, the boom in data centers and artificial intelligence (AI).
Mitsubishi is a major player in the global liquefied natural gas (LNG) sector, covering the entire business chain from extraction and trading to marketing and logistics. It has stakes in several LNG projects around the world, including Malaysia, Oman, Australia, Russia, the US, and Canada. These stakes secure the company’s production of 15 million tons of LNG per year.
Japanese companies are increasing their bets on American gas and oil, with investments heading to the US
Aethon‘s extraction assets are primarily focused on the Haynesville shale deposit in Louisiana and eastern Texas. These assets have made the company one of the largest private gas producers in the US, with an annual production of approximately 15 million tons of LNG. Last October, Japan’s largest electricity producer, JERA, announced that it would purchase natural gas production in the US for USD 1.5 billion.
In December, Japan Petroleum Exploration announced that it would carry out its largest transaction to date, purchasing Verdad Resources Intermediate Holdings (VRIH), which owns heavy oil and gas shale deposits in the US, for USD 1.3 billion. In December, the Japanese newspaper Nikkei wrote that projects in the energy sector are likely candidates for Japanese investment commitments under the trade agreement with the US. However, it is not yet clear whether Mitsubishi’s transaction counts toward the investment commitments, CNBC wrote.
Source: Reuters
