Japan’s largest power generator JERA will acquire natural gas production assets in Louisiana’s Haynesville Shale for $1.5 billion, marking its first direct investment in U.S. shale gas production.
The company has reached an agreement with Williams Companies Inc. and GEP Haynesville II, a joint venture between GeoSouthern Energy and Blackstone (NYSE: BX), to purchase 100 percent of their interests in the South Mansfield gas field, according to Reuters. The South Mansfield field is located in the Haynesville Shale basin in western Louisiana, a prolific natural gas-producing region that has drawn increased investment amid rising LNG demand.
JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power, has been expanding its U.S. LNG presence, including a recent letter of intent to offtake gas from Alaska’s $44 billion LNG export project. Global utilities are increasingly acquiring upstream gas assets to secure fuel supply amid rising LNG demand and energy volatility.
Baker Botts LLP acted as advisor to JERA.