Acquisition · Natural gas

Mitsui buys Texas shale gas acreage near Gulf Coast LNG hub

Buyer: Mitsui & Co. (Mitsui E&P USA) (Tokyo)
Target: Tatonka gas asset (from Sabana and Vanna), Texas
Value
Status: Completed in June 2024.
Date: 2024-06-24

Mitsui's US subsidiary Mitsui E&P USA completed the purchase of the Tatonka unconventional gas block, about 46,500 acres in Texas, from producers Sabana and Vanna. Mitsui did not disclose the price in its English or Japanese releases. Full-scale drilling and development are planned from 2027, and the company highlighted the block's access to Gulf Coast LNG export terminals and ammonia plants.

Why it matters

Holding upstream gas near Gulf Coast LNG and ammonia plants positions Mitsui to tie US supply to export and lower-carbon fuel demand.

Running it itself

Mitsui E&P USA plans to operate the block itself. It will first drill wells to test how they perform before moving to full-scale development. Mitsui said US gas demand is set to rise as new LNG export plants start up and electricity use grows.

Part of a gas chain

Mitsui is also involved in liquefying and exporting US gas and in making methanol from gas. It plans to link upstream production with these businesses and to use carbon capture and storage to lower emissions.

Sources

Kakehashi M&A News home