Tokyo Gas Enters US Shale Deal

Tokyo Gas has inked a deal to buy Quicksilver Resources’ working interests in the shale gas development joint venture in US Barnett basin, Texas and form a joint venture. This would be the first such deal for Tokyo Gas in the US shale gas space.

The Japan based company will purchase 25% working interests of the business for $485 million through TG Barnett Resources LP (TGBR), a wholly‐owned subsidiary of Tokyo Gas America Ltd, the company said in a statement. Quicksilver will remain as operator of the assets. 

These assets, operated by QRI, currently produce approximately 275 mmcfed of shale gas and natural gas liquids marketed in the US. TGBR’s share of gas production will be marketed in the US market, and is forecasted to be some 0.35 to 0.5million tons per annum in terms of LNG volume, the company said.

Tokyo Gas said that it plans to continue look towards overseas business with an aim to diversify and expand its upstream business as well as establishment of LNG value chain, as targeted in the “Challenge 2020 Vision”.