Japan's Mitsui buys majority stake in US unconventional gas asset
Japan’s Mitsui & Co. has bought a 92% working interest in an unconventional gas asset in Texas from Silver Hill Energy Partners, it announced on April 20 without disclosing the deal value.
This asset, which was operated by Silver Hill Eagle Ford E&P, a subsidiary of Silver Hill Energy Partners, is in South Texas with access to the Gulf Coast industrial area, which includes LNG export terminals and ammonia plants.
Mitsui expects additional gas production from this asset with further development. Mitsui E&P USA, a wholly owned subsidiary of Mitsui, will develop and operate the asset, aiming for gas production of over 200mn m3/day from the field.
Mitsui said it is also promoting liquefaction and export of US natural gas to global markets, and methanol production businesses using natural gas as feedstock.
“In addition to proactively pursuing upstream development projects, we will strengthen the natural gas value chain, including adjacent businesses, and work toward achieving further low-carbon solutions and decarbonisation through the use of carbon capture and storage and other measures,” the company said.
Mitsui believes that natural gas and LNG will play an important role as a "pragmatic solution" for the energy transition. The company recently signed a long-term LNG offtake contract with Oman LNG.