Tokyo Gas, through its subsidiary Tokyo Gas America, acquired a 30 percent equity interest in Castleton Resources, a subsidiary of U.S.-headquartered Castleton Commodities International, the Japan-based gas company announced Monday.
Castleton Resources owns and operates over 160,000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville shale assets, which have net production of 238 million cubic feet equivalent per day.
The company seeks to acquire and develop oil and gas assets in East Texas and the Louisiana region with a specific focus on the unconventional Haynesville assets.
This is the third investment in unconventional upstream assets for Tokyo Gas in the U.S. and the first equity investment in an upstream company, Tokyo Gas noted, but failed to reveal the purchase price of the equity interest.
"The Gulf Coast area, specifically East Texas and North Louisiana, is strategically important for Tokyo Gas and we are excited to join forces with Castleton Commodities International and the quality management team at Castleton Resources," Shunjiro Yamashita, president and chief executive officer of Tokyo Gas America, was quoted as saying.
Tokyo Gas Group will continue to expand its upstream business and build a global LNG value chain as part of its Challenge 2020 Vision, the company concluded.
Tokyo Gas is the largest gas utility company in Japan and supplies gas and power to 11 million customers in the greater Tokyo area.
By Ebru Sengul