Tokyo Gas to Focus on US Upstream Gas Investment

Tokyo Gas is sharpening focus on upstream gas investments in North America due to rising cost in locations like Australia.

"The cost of Australian grassroots projects is going up and they are becoming less competitive and probably we need to pause," Wall Street Journal quoted Shigeru Muraki, executive vice president as saying on the sidelines of the World Energy Congress in Daegu, South Korea.

In recent years, Japanese companies have moved into North American shale gas space with an aim to export LNG back to Japan.

"We are now moving to the US," he said.

In March this year, Tokyo Gas inked its first shale deal in the US. The Japanes firm bought 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.

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