Tokyo Gas has announced that TG Natural Resources, a wholly owned subsidiary of Tokyo Gas America, Inc., has acquired all shares of Rockcliff Energy, Inc., a natural gas development and production company in Texas and Louisiana in the U.S., which is invested by Quantum Energy Partners, through TGNR. The shares of Rockcliff Energy Co., Ltd. will be sold by Rockcliff Intermediate Holdings Co., Ltd. on December 29, 2023 to approximately 2,700 yen. The acquisition is scheduled to be completed for 1 million US dollars (approximately 405 billion yen).

With this stock acquisition, TGNR's production capacity of natural gas and natural gas liquids will be approximately 330 million cubic feet/day. (Approximately 9.3 million m3/day, equivalent to natural gas) to approximately 1,300 million cubic feet/day (approximately 37 million m3/day, equivalent to natural gas), The area of ​​ownership is approximately 1,540 km² (approximately 70% of Tokyo), making it one of the largest businesses in Texas and Louisiana in the United States.

With the demand for natural gas expected to increase in the future, including the construction of new LNG export terminals in the United States, the Tokyo Gas Group is aiming to develop its shale gas business in North America in its medium-term management plan "Compass Transformation 23-25." The company aims to expand, and through this stock acquisition, it expects to build a revenue base overseas.

Akira Inukai, President of Tokyo Gas America, commented:
"Tokyo Gas invested in Castleton Resources, the predecessor of TGNR, in May 2017, and made the company a subsidiary in August 2020. The Texas/Louisiana area where TGNR owns mining areas is close to new LNG export terminals where demand for natural gas is expected to increase in the future, and the company was looking to acquire new prime assets. We are pleased that we have been able to acquire Rockcliff Energy, which is adjacent to the block owned by TGNR and has strong synergistic effects."

Craig Jarchow, President of TGNR, added:
"We are very pleased to have been able to acquire a prime asset through the acquisition of Rockcliff Energy shares. As one of the leading natural gas development and production companies in the United States, we will continue to focus on natural gas production that contributes to low carbon emissions while paying attention to the environment, such as promoting methane emission countermeasures in shale development, and contributing to the expansion of Tokyo Gas Group's profits."

KeyFacts Energy: Acquisitions & Mergers news