Acquisitions · Energy (natural gas)
JERA buys a Louisiana Haynesville shale gas asset for $1.5 billion
- Buyer
- JERA (Tokyo)
- Target
- South Mansfield Haynesville shale gas asset (Williams / GEP Haynesville II), Western Louisiana
- Value
- $1.5B
- Status
- Completed in February 2026.
- Date
- 2025-10-23
JERA, Japan's largest power generator, agreed through its US unit JERA Americas to take full ownership of the South Mansfield gas asset in western Louisiana's Haynesville shale, buying it from Williams and GEP Haynesville II. The field produces more than 500 million cubic feet a day, has about 200 undrilled locations, and is slated to ramp toward 1 billion cubic feet a day.
Why it matters
It is JERA's first direct move into US upstream gas production, giving the utility supply close to Gulf Coast LNG terminals as it signs long-term US LNG offtake. The White House cited the deal in its October 2025 fact sheet on Japanese investment.
The deal
The $1.5 billion is the upfront investment. It combines two purchases. Williams sold its minority interest for $398 million plus deferred monthly payments through 2029 linked to a development plan. GEP Haynesville II sold its majority interest but stays on as operator, developing the field for JERA under a fixed-fee contract operating agreement.
In September 2025, before the announcement, Reuters reported that JERA had made the top bid of about $1.7 billion for GEP Haynesville II's assets.
Baker Botts was legal counsel to JERA. Kirkland & Ellis advised GEP Haynesville II, and Haynes Boone advised Williams.
Approvals and timeline
The agreement was announced on October 22-23, 2025. The sale required clearance from the Committee on Foreign Investment in the United States (CFIUS) and was originally expected to close by the end of 2025. JERA announced completion on February 12, 2026.
Strategy
Williams keeps gathering gas from South Mansfield and moving it through its Louisiana Energy Gateway system toward LNG markets. The gathering system will be expanded and the field's volume commitment to the pipeline increased. Development plans also include capturing and storing the carbon dioxide produced with the gas. For Williams, the sale was part of a wider move announced the same day to invest in Woodside's Louisiana LNG project.
JERA described the upstream purchase as a way to spread its position along the LNG value chain and reduce market risk. In June 2025 it agreed to 20-year deals for 5.5 million tonnes a year of US LNG with several suppliers. It already buys about 3.5 million tonnes a year from Freeport and Cameron and holds a 21.9% stake in Freeport LNG Development.
Sources
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