Tokyo Gas Acquires Stake in Chevron's Texas Gas

TG Natural Resources LLC, primarily owned by Tokyo Gas Co. Ltd., has acquired a 70% stake in Chevron's East Texas shale gas assets for $525 million. The deal includes 71,000 net acres and anticipates increasing TGNR's production to 1 Bcfe/d, with Chevron retaining a 30% non-operated interest. The transaction is structured with $75 million paid in cash and $450 million as a capital carry to fund further development in the Haynesville Shale. This acquisition aligns with Tokyo Gas's strategy to enhance its U.S. presence and potentially export LNG to Japan, contributing to energy security in line with agreements between Japan and the U.S. The move is expected to generate significant synergies and operational efficiencies, enhancing TGNR's footprint in the Ark-La-Tex region. Rising U.S. natural gas prices and the Trump administration's focus on boosting LNG exports provide a conducive backdrop for this strategic expansion.