Shizuoka Gas has signed a heads of agreement (HoA) with TG Eagle Ford Resources (TGER), a wholly-owned subsidiary of Tokyo Gas America, to acquire interests in the US shale gas development project.
The project involves the joint ownership of interests involving three companies - Lewis Energy Group as Operator, TGER and bp Energy as non-operator in the Eagle Ford formation and other areas in the Webb and La Salle counties of south Texas.
Shizuoka Gas will acquire all of the interests held by TGER (25% of the total interests jointly held by the three companies), marking the first time that Shizuoka Gas has participated in a North American business and enters into the upstream natural gas sector.
The Japanese company is negotiating to sign a sales and purchase agreement (SPA) for the acquisition of interests and plans to acquire them from TGER for $130 mill through a local subsidiary, which is due to be established this year.
The shale gas production volume attributable to ther local subsidiary is expected to total around 400,000 tonnes per year (average over 20 years) in LNG equivalent.
Produced gas is to be marketed in the US.
Starting with this project, Shizuoka Gas said it will consider further US business developments in the future.
