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TG Natural Resources Acquires 70% Stake in Chevron East Texas Gas Assets
Overview of the Acquisition
TG Natural Resources LLC (TGNR) has acquired a 70% stake in east Texas gas assets from Chevron for $525 million. This move marks a strategic expansion of TGNR’s operations in the U.S. gas sector.
Expanding Presence in the Haynesville Shale
TGNR is already the fourth-largest producer in the Haynesville shale basin. The acquisition is expected to generate synergies of over $170 million during the development of the newly acquired assets, according to CEO Craig Jarchow.
Strategic Importance of the Haynesville Basin
The Haynesville shale basin, located in east Texas and northwest Louisiana, is a key area for natural gas production. Its proximity to liquefied natural gas (LNG) export facilities on the Gulf Coast makes it a valuable asset for energy investors.
Energy Security and LNG Exports
According to Yoshihisa Yamada, Senior General Manager at Tokyo Gas, this investment aligns with long-term energy security goals for both the United States and Japan. The acquisition had been under consideration prior to recent political developments but remains in line with efforts to increase LNG supplies from the U.S. to Japan.
Projected Gas Production
The acquired asset is expected to produce 1.4 billion cubic feet of natural gas per day by 2030, contributing significantly to the region’s output.
Future LNG Investment Considerations
Tokyo Gas is evaluating potential investments in LNG liquefaction facilities in the U.S., though no concrete decisions have been made. The company aims to enhance coordination between its LNG trading and shale gas businesses, with shale gas seen as a key profit driver in the coming years.
“TG Natural Resources Acquires 70% Stake in Chevron East Texas Gas Assets” “TG Natural Resources Acquires 70% Stake in Chevron East Texas Gas Assets”