Investment · Energy
Tokyo Gas buys 49% of ARM Energy's new US gas marketing and trading arm
- Investor
- Tokyo Gas (via Tokyo Gas America) (Tokyo)
- In
- ARM Energy Trading (ARM Energy Holdings), Texas
- Value
- Status
- Announced.
- Date
- 2024-02-06
Tokyo Gas, through Tokyo Gas America, agreed to take a 49% stake in ARM Energy Trading, a natural gas marketing and trading company newly formed by Texas-based ARM Energy Holdings. It set up two new US subsidiaries to hold the investment. The price was not disclosed.
Why it matters
Adding a marketing and trading business lets Tokyo Gas sell the shale gas it now produces in the US, after its 2023 purchase of Rockcliff Energy, and capture more of the North American gas value chain.
How it is set up
ARM Energy Trading, based in Houston, was formed on February 1, 2024, to hold ARM's two trading units, ARM Energy Services and ARM Energy Mexico. ARM keeps 51%. Tokyo Gas America's new TGAM Trading owns TGARM Investment, which holds the 49%.
Tokyo Gas's aims
Tokyo Gas said ARM's strengths are its customer relationships and its skill at buying and selling gas. The deal fits the "Compass Transformation 23-25" plan to build overseas earnings, and Tokyo Gas wants trading to help it steady profits when energy prices swing.
Sources
Kakehashi M&A News home
