Japan’s Tokyo Gas Expands in US Shale Gas With Chevron Deal

TG Natural Resources LLC (TGNR), a company owned by Tokyo Gas and Castleton Commodities International, recently acquired a 70% stake in Chevron’s east Texas gas assets for $525 million. This move marks a significant expansion for TGNR, which is already the fourth-largest producer in the Haynesville shale basin. According to CEO Craig Jarchow, the deal is expected to generate over $170 million in synergies during the asset’s development.

A natural gas pipeline and the Tokyo gas logo are seen in this illustration taken January 4, 2023.

Haynesville, located in east Texas and northwest Louisiana, is a prime export hub for liquefied natural gas (LNG) facilities and projects clustered along the Gulf Coast. The strategic location has garnered investor interest, particularly as U.S. President Donald Trump aims to boost gas exports. Tokyo Gas, Japan’s largest city gas provider, has also been expanding its LNG and shale gas operations, viewing the latter as a key profit driver in the coming years.

This transaction underscores the growing importance of U.S. gas production and its potential to strengthen global energy security. For more updates, stay tuned to the Reuters Tariff Watch newsletter.