Tokyo Gas has signed a memorandum of understanding with Shizuoka Gas (SG) regarding the transfer of the Eagle Ford shale gas interests in southern Texas, USA, which Tokyo Gas held through TG Eagle Ford Resources. Tokyo Gas participated in this project in June 2016 by acquiring the Eagle Ford and other interests held by Vertex Corporation as its second shale gas development project in the USA. Since then, this project has contributed to the growth of Tokyo Gas's overseas business for about eight years. As part of Tokyo Gas's review of its asset portfolio to improve asset efficiency, the company will transfer the interests to SG for US$130 million and focus on the business of TG Natural Resources, which has assets in East Texas and North Louisiana.
Tokyo Gas has set 'Transformation of the LNG value chain' as a part of its Group Management Vision 'Compass 2030.' By improving asset efficiency in the shale gas business in the United States and building a natural gas and LNG value chain, the company will contribute to further growth of its LNG trading business and stable energy supplies to Japan and other countries.
Source: Tokyo Gas
