Japan’s biggest city gas supplier has purchased a stake in the Eagle Ford Shale.
Related: Japan Eyes Eagle Ford Natural Gas
Tokyo Gas Co. announced on Tuesday that they have closed on their acquisition of ~25% interest in Eagle Ford shale gas assets from the VirTex group.
The 34,000 acre assets are located in the Webb and La Salle counties of south Texas.
According to a Japanese news source, the deal was worth more than 5 billion yen ($48 million), but the company press release indicates the investment will be higher.
In June 2015, a delegation from the Consulate General of Japan toured Texas gas facilities in Freeport, Houston, Moulton and San Antonio. Many suspect that Japanese producers are looking to the Eagle Ford as a potential source of much needed natural gas since a 2011 earthquake wrecked a great deal of the country’s energy infrastructure.
This deal marks the the second time that Tokyo Gas has invested in U.S. shale. In 2013, the company bought another gas stake in the Barnett shale for $485 million.