OG East Texas LLC, a subsidiary of Japanese utility Osaka Gas, has entered into an agreement with U.S. independent oil and natural gas company, Sabine, to acquire a 35 percent working interest in a shale gas project in Texas, the company announced Friday.
The project, located primarily in Harrison and Panola Counties, currently produces approximately 300,000 tons of LNG per year from about 450 wells located on nearly 100,000 acres, the company said.
Sabine and Osaka Gas plan to continue developing the acreage and increasing production, it added.
The Japanese utility also said that participation in the project would further enhance its upstream operating capability, adding to its upstream business portfolio to build the natural gas value chain in the U.S. which includes Freeport LNG liquefaction business and electric power business.
Osaka Gas engages in a broad range of energy services including natural gas supply, power generation and supply. It is also active in energy business overseas, including North America, Asia, and Australia.
By Ebru Sengul