Seeing LNG as ‘pragmatic solution’ for energy transition, Mitsui & Co. buys majority stake in US gas asset
Japanese trading company Mitsui & Co., through its US-based subsidiary, has acquired an unconventional gas asset in Texas in line with its belief that natural gas and LNG will play an important role as a “pragmatic solution” for the energy transition.
On 20 April, Mitsui said it completed the acquisition of approximately 92% working interest in an unconventional gas asset in Texas from the operator Silver Hill Eagle Ford E&P, LLC, a subsidiary of Silver Hill Energy Partners, LP. The acquisition was completed through Mitsui E&P USA LLC.
The asset, a part of the Hawkville field, is in South Texas with access to the Gulf Coast industrial area, which includes LNG export terminals and ammonia plants.
As disclosed, additional gas production is expected from this asset with further development and Mitsui E&P USA LLC will develop and operate the asset, aiming for stable gas production of over 200 million cubic feet per day from the field, while maintaining a focus on the safety of employees, the community, and the environment.
Mitsui added 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 CCS (carbon capture and storage) and other measures”, the company stated.
Mitsui believes that natural gas and LNG will play an important role as a “pragmatic solution” for energy transition, and we will continue to contribute to a stable energy supply, enhanced quality of life, and sustainable development of society by further promoting our global natural gas and LNG businesses.