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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
Reviewed by Jesus Davis, Vice President of Energy Services
Summary
Ahead of President Donald Trump's visit to Asia, Japanese energy company JERA spent $1.5 billion to acquire acreage in the Haynesville play, while Tokyo Gas secured an offtake agreement for the planned Alaska LNG facility.
While looking to reshore much of the U.S. economy with protectionist trade policies, Japan is spending heavily on natural gas assets in the world's largest economy.
Japan, among the largest economies in the world in its own right, is heavily dependent on foreign supplies of crude oil and natural gas due to its lack of domestic reserves. On Thursday, energy company JERA (Tokyo, Japan) said it spent $1.5 billion to acquire acreage in the Haynesville Basin from Williams Companies (Tulsa, Oklahoma) and GEP Haynesville II, LLC.
Tapping some 200 undeveloped locations, JERA said it believes the assets in question can produce more than 500 million cubic feet of natural gas per day. Future investments could bring production to 1 billion cubic feet per day (Bcf/d), the company said.
John O'Brien, the head of JERA's division in the Americas, said the agreement capitalizes on global leadership from the United States in natural gas.
"The upstream Haynesville acquisition is a strategic addition to our asset portfolio, enabling us to advance our unique supply chain expertise while deepening our commitment to Americas' energy future," he said.
Haynesville, situated almost exclusively in Louisiana, is the third-largest inland natural gas producer in the United States after the Appalachia and Permian basins, respectively. The U.S. Energy Information Administration (EIA), part of the U.S. Department of Energy, expects production to average 15.2 Bcf/d this year.
"We expect production in the Haynesville region to grow by 2% in 2026 to average 15.6 Bcf/d as higher natural gas prices has led to an increase in drilling activity in the region," EIA analysts wrote in their monthly market report for October.
The acquisition comes as U.S. President Donald Trump is planning a visit to Japan and South Korea next week to back billions of dollars in investments for the U.S. economy. Trump on his visit to Asia may be able to shore up bilateral relations with South Korea after ties soured when U.S. immigration officials detained several South Koreans during a raid on a Hyundai plant in Georgia in September.
Japan, for its part, is in something of a transition, with newly-elected Prime Minister Sanae Takaichi taking something of a more right-leaning stance with the long-tenured Liberal Democratic Party.
Tokyo Gas' Alaska LNG Offtake Agreement
Both Trump and Takaichi have swapped pleasantries on social media. Meanwhile, Tokyo Gas Company (Tokyo) signed a non-binding letter of intent to take 1 million metric tons per annum (MTPA) of gas in the liquid form from the proposed Alaska LNG facility, led by Glenfarne Alaska.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here the Alaska LNG project reports.
The facility would have a nameplate capacity of 20 MTPA of gas in the liquid form, and require an 807-mile pipeline for feed gas from Alaska's North Slope. Engineering firm Worley (North Sydney, Australia) is in the process of finalizing a cost assessment of the pipeline.
"This agreement validates the strength of Alaska LNG's commercial offering and the importance of Alaska LNG as a strategically positioned supplier of affordable, clean LNG for U.S. Pacific allies," said Glenfarne Chief Executive Officer Brendan Duval.
From South Korea, steel producer POSCO (Pohang) reached an agreement in September to supply the bulk of the steel necessary for a pipeline slated to feed the Alaska LNG facility. U.S tariffs on steel and aluminum create obstacles for a midstream sector that doesn't make its own pipeline.
POSCO also secured 1 million metric tons of LNG per year from the project for a 20-year period.
Though it's listed as a medium-probability project in Industrial Info's database, the facility is the only one that is federally-authorized to deliver LNG from the U.S. Pacific Coast.
Project planners submitted an export application in 2014, and it has been approved by the U.S. Federal Energy Regulatory Commission (FERC), but is not yet under construction.
Key Takeaways
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Reviewed by Jesus Davis, Vice President of Energy Services
Summary
Ahead of President Donald Trump's visit to Asia, Japanese energy company JERA spent $1.5 billion to acquire acreage in the Haynesville play, while Tokyo Gas secured an offtake agreement for the planned Alaska LNG facility.
While looking to reshore much of the U.S. economy with protectionist trade policies, Japan is spending heavily on natural gas assets in the world's largest economy.
Japan, among the largest economies in the world in its own right, is heavily dependent on foreign supplies of crude oil and natural gas due to its lack of domestic reserves. On Thursday, energy company JERA (Tokyo, Japan) said it spent $1.5 billion to acquire acreage in the Haynesville Basin from Williams Companies (Tulsa, Oklahoma) and GEP Haynesville II, LLC.
Tapping some 200 undeveloped locations, JERA said it believes the assets in question can produce more than 500 million cubic feet of natural gas per day. Future investments could bring production to 1 billion cubic feet per day (Bcf/d), the company said.
John O'Brien, the head of JERA's division in the Americas, said the agreement capitalizes on global leadership from the United States in natural gas.
"The upstream Haynesville acquisition is a strategic addition to our asset portfolio, enabling us to advance our unique supply chain expertise while deepening our commitment to Americas' energy future," he said.
Haynesville, situated almost exclusively in Louisiana, is the third-largest inland natural gas producer in the United States after the Appalachia and Permian basins, respectively. The U.S. Energy Information Administration (EIA), part of the U.S. Department of Energy, expects production to average 15.2 Bcf/d this year.
"We expect production in the Haynesville region to grow by 2% in 2026 to average 15.6 Bcf/d as higher natural gas prices has led to an increase in drilling activity in the region," EIA analysts wrote in their monthly market report for October.
The acquisition comes as U.S. President Donald Trump is planning a visit to Japan and South Korea next week to back billions of dollars in investments for the U.S. economy. Trump on his visit to Asia may be able to shore up bilateral relations with South Korea after ties soured when U.S. immigration officials detained several South Koreans during a raid on a Hyundai plant in Georgia in September.
Japan, for its part, is in something of a transition, with newly-elected Prime Minister Sanae Takaichi taking something of a more right-leaning stance with the long-tenured Liberal Democratic Party.
Tokyo Gas' Alaska LNG Offtake Agreement
Both Trump and Takaichi have swapped pleasantries on social media. Meanwhile, Tokyo Gas Company (Tokyo) signed a non-binding letter of intent to take 1 million metric tons per annum (MTPA) of gas in the liquid form from the proposed Alaska LNG facility, led by Glenfarne Alaska.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here the Alaska LNG project reports.
The facility would have a nameplate capacity of 20 MTPA of gas in the liquid form, and require an 807-mile pipeline for feed gas from Alaska's North Slope. Engineering firm Worley (North Sydney, Australia) is in the process of finalizing a cost assessment of the pipeline.
"This agreement validates the strength of Alaska LNG's commercial offering and the importance of Alaska LNG as a strategically positioned supplier of affordable, clean LNG for U.S. Pacific allies," said Glenfarne Chief Executive Officer Brendan Duval.
From South Korea, steel producer POSCO (Pohang) reached an agreement in September to supply the bulk of the steel necessary for a pipeline slated to feed the Alaska LNG facility. U.S tariffs on steel and aluminum create obstacles for a midstream sector that doesn't make its own pipeline.
POSCO also secured 1 million metric tons of LNG per year from the project for a 20-year period.
Though it's listed as a medium-probability project in Industrial Info's database, the facility is the only one that is federally-authorized to deliver LNG from the U.S. Pacific Coast.
Project planners submitted an export application in 2014, and it has been approved by the U.S. Federal Energy Regulatory Commission (FERC), but is not yet under construction.
Key Takeaways
- Japan-based JERA acquired $1.5 billion worth of natural gas assets in the Haynesville shale play
- Tokyo Gas reached an offtake agreement for the planned Alaska LNG facility
- Japan is heavily dependent on foreign supplies of crude oil and natural gas due to its lack of domestic reserves
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
