Japan-based Mitsubishi Corp. last week entered the U.S. natural gas shale business with its purchase of assets in Texas and Louisiana. Mitsubishi said Jan. 15 it agreed to acquire all equity interests in Aethon III, Aethon United, and related entities and interests for $5.2 billion. The deal is aimed at strengthening Mitsubishi’s integrated energy and power business.
Aethon’s shale assets are primarily in the Haynesville shale formation in east Texas and Louisiana. Currently they produce about 2.1 Bcfd of natural gas. Haynesville, a source of natural gas for the U.S. southern market, offers access to multiple LNG export plants.
The acquisition is expected to close in Q1 of Japan’s fiscal year (April to June).