Japanese trading house Mitsui & Co. Ltd has purchased a shale gas asset in Texas that it seeks to bring to full-scale development after 2026, Bloomberg reported. The purchase price was not disclosed.
Mitsui’s US-based subsidiary purchased the 46,500-acre asset, named Tatonka, from Sabana LLC and Vanna LLC. It will drill wells to evaluate the site, which has access to liquefied natural gas export terminals and ammonia plants on the Gulf Coast.
Japanese companies are betting that demand for natural gas will remain strong in the energy transition, Bloomberg reported. Mitsui last year bought a 92% stake in a shale gas asset in South Texas from Silver Hill Eagle Ford, and Tokio Gas Co. acquired Rockcliff Energy for about $2.7 billion in a move to expand its US shale business.