Japan’s Mitsubishi Corporation has finalised a deal to buy all of Aethon’s US gas and pipeline assets, including the Haynesville reserves, for $5.2bn. It is expected to close in the second quarter.
It marks the corporation’s entry into the US shale gas business across the value chain, from upstream ownership through domestic sales and export of produced gas.
The portfolio spans upstream shale gas development with Ovintiv in British Columbia, midstream marketing and logistics through CIMA Energy in Houston, and LNG exports via LNG Canada and Cameron LNG, which is located close to Haynesville and the industrial cluster on the US Gulf Coast.
Haynesville is a major supply source of natural gas for the growing southern US market and offers favourable access to multiple LNG export terminals, including Cameron LNG, where Mitsubishi holds liquefaction capacity rights under a tolling agreement.
One of Cameron LNG’s shareholders is Japan LNG Investment, a joint venture between Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha.
Last July Cameron shipped its thousandth LNG cargo. The facility features three liquefaction trains capable of exporting up to 14.95 million tonnes per annum, or approximately 772 bcf of natural gas per year.
Aethon’s natural gas is currently sold in the US southern market, and part of this volume is being considered for export as LNG to Asia, including Japan, as well as to Europe.
The deal is also part of broader efforts by Mitsubishi to build an integrated value chain in the US, from upstream gas development to power generation, data centre development, chemicals production, and related businesses.
US industrial giant Honeywell recently won a contract to supply integrated LNG pretreatment and liquefaction solutions for Commonwealth LNG’s planned export facility in Cameron Parish, Louisiana. To read an interview with Honeywell Process Technology, click here.
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