Tokyo Gas to Buy Interest in Barnett Basin Shale Gas Development (USA)
Tokyo Gas Co entered into a sale and purchase contract with Quicksilver Resources Inc. (QRI) to acquire its working interests in the shale gas development joint venture in US Barnett basin, Texas and forma joint vent.
This is the first time for Tokyo Gas to participate in the shale gas development in the US. These assets, operated by QRI, currently produce approximately 275 mmcfed of shale gas and natural gas liquids marketed in the US market.
Tokyo Gas obtains 25% working interests of the business for US $ 485 million through TG Barnett Resources LP (TGBR), a wholly‐owned subsidiary of TokyoGas America Ltd. TGBR’s share of gas production will be marketed in the US market, and is forecasted to be some 0.35 to 0.5 million tons per annum in terms of LNG volume.
“Tokyo Gas will continue to work intensively for participation in the overseas business with a view to diversification and expansion of its upstream business as well as establishment of LNG value chain, as targeted in the “Challenge 2020 Vision”.” the company said in a statement.
LNG World News Staff, March 29, 2013; Image: Tokyo Gas