Released November 18, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
The Japanese energy company said it sold off its entire stake in subsidiary TG Natural Resources to Grayrock Energy (Dallas, Texas) for $255 million. The subsidiary acquired assets primarily in the Haynesville shale play in Louisiana from Range Resources (Fort Worth, Texas) in 2020.
Even with the transaction, the Japanese energy company said it was proceeding under its so-called Compass 2030 plan that aims to transform the value chain for LNG.
"The company will continue to improve the efficiency of its shale gas business in the U.S. and contribute to the stable energy supply in Japan and other countries by further developing its natural gas and LNG value chain, including the expansion of LNG trading operations," a statement Monday from Tokyo Gas read.
Tokyo Gas had no information on acreage or production capacity. The Haynesville shale play is among the most prolific gas basins in the U.S., with production expected to average 15.3 billion cubic feet per day (Bcf/d). That represents about 13% of the total natural gas production expected from the Lower 48 states this year, according to the U.S. Department of Energy.
In April, Chevron USA, a division of the Houston-based parent company, closed a transaction to sell its 70% interest in gas assets to an affiliate of Tokyo Gas for $525 million, which at the time said it was keen on further development in the Haynesville Shale.
In explaining the sale on Monday, Tokyo Gas said it was working to "optimize its asset portfolio and enhance overall capital efficiency." The subsidiary reported total operating income of $88 million for fiscal year 2024, compared to $139 million for 2022.
By the numbers
Japan lacks many natural resources of its own, making it heavily dependent on foreign supplies. In October, Tokyo Gas 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 learn more about Alaska LNG from a detailed list of 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, though neither the export terminal nor the pipeline is under construction.
U.S. President Donald Trump worked the sidelines during a recent visit to Asia to shore up trade. 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.
Greeted by full military honors during his visit, Trump declared this to be the "golden age" of bilateral ties with Japan.
Key Takeaways
About Industrial Info Resources
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Tokyo Gas said one of its subsidiaries sold off its stake in the Haynesville play, but it remained committed to the U.S. natural gas sector.Assets Unloaded for $255 Million
Tokyo Gas Company Limited (Tokyo, Japan) said it remains committed to U.S. natural gas and liquefied natural gas (LNG) value chains after selling off a U.S.-based subsidiary working in the Louisiana shale patch.The Japanese energy company said it sold off its entire stake in subsidiary TG Natural Resources to Grayrock Energy (Dallas, Texas) for $255 million. The subsidiary acquired assets primarily in the Haynesville shale play in Louisiana from Range Resources (Fort Worth, Texas) in 2020.
Even with the transaction, the Japanese energy company said it was proceeding under its so-called Compass 2030 plan that aims to transform the value chain for LNG.
"The company will continue to improve the efficiency of its shale gas business in the U.S. and contribute to the stable energy supply in Japan and other countries by further developing its natural gas and LNG value chain, including the expansion of LNG trading operations," a statement Monday from Tokyo Gas read.
Tokyo Gas had no information on acreage or production capacity. The Haynesville shale play is among the most prolific gas basins in the U.S., with production expected to average 15.3 billion cubic feet per day (Bcf/d). That represents about 13% of the total natural gas production expected from the Lower 48 states this year, according to the U.S. Department of Energy.
In April, Chevron USA, a division of the Houston-based parent company, closed a transaction to sell its 70% interest in gas assets to an affiliate of Tokyo Gas for $525 million, which at the time said it was keen on further development in the Haynesville Shale.
In explaining the sale on Monday, Tokyo Gas said it was working to "optimize its asset portfolio and enhance overall capital efficiency." The subsidiary reported total operating income of $88 million for fiscal year 2024, compared to $139 million for 2022.
By the numbers
- $255 million netted for U.S. shale acreage
- 13% of inland gas production comes from Haynesville
- 36% decline in subsidiary's income year-on-year to 2024
Japan Needs Resources
Rival Japanese energy company JERA (Tokyo) was the high bidder with about $1.7 billion offered for GEP Haynesville II, a joint venture between midstream operators Williams Companies (Tulsa, Oklahoma) and Blackstone-backed GeoSouthern Energy (The Woodlands, Texas). The joint venture was a spinoff of the defunct Chesapeake Energy, which dumped about 50,000 acres in the Haynesville shale play after filing for bankruptcy in 2020.Japan lacks many natural resources of its own, making it heavily dependent on foreign supplies. In October, Tokyo Gas 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 learn more about Alaska LNG from a detailed list of 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, though neither the export terminal nor the pipeline is under construction.
U.S. President Donald Trump worked the sidelines during a recent visit to Asia to shore up trade. 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.
Greeted by full military honors during his visit, Trump declared this to be the "golden age" of bilateral ties with Japan.
Key Takeaways
- Still keen on U.S. gas, Tokyo company dumps Haynesville acreage
- Japan's is an import-dependent economy for energy
- Tokyo Gas has offtake agreement for Alaska LNG
About Industrial Info Resources
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
