Tokyo Gas Buys Stake in US Gas Asset: Press
Japanese utility Tokyo Gas has bought a stake in a natural gas asset in the US state of Louisiana for approximately yen 20bn ($188mn), Nikkei reported on September 9.
Tokyo Gas America, a unit of Tokyo Gas, acquired the stake from Range Resources at a price nearly 20% less than what was originally anticipated, the newspaper reported citing sources.
The transaction was made through a unit of Tokyo Gas America called Castleton Resources. Tokyo Gas raised its stake in Castleton Resources to 70% in July in preparation to make its bid.
US gas trader Castleton Commodities International owns the rest of the unit. Through the acquisition, Castleton Resources will expand its annual gas production capacity to 4.7bn m3 from 2.9bn m3, Nikkei said.
While Tokyo Gas is expanding in the US, fellow Japanese company Sumitomo recently offloaded its entire 30% stake in a Marcellus shale gas project in the state of Pennsylvania.