TOKYO May 8 Japan's biggest city gas supplier
Tokyo Gas Co said on Monday it has acquired a 30
percent stake in a subsidiary of Castleton Commodities
International LLC, its first equity investment in a U.S.
Tokyo Gas did not reveal the price for the stake in
Castleton Resources LLC, which owns and operates over 160,000
net acres of leasehold in East Texas with access to the Cotton
Valley and Haynesville Shale and has a net production of about
238 million cubic feet equivalent per day, equal to 1.65 million
tonnes per annum of liquefied natural gas (LNG).
Castleton Commodities paid more than $1 billion to buy those
assets from Anadarko Petroleum Corp last November.
Tokyo Gas will not receive gas offtake from the project but
Castleton Resources, which is also owned 70 percent by a unit of
Castleton Commodities International, will sell the output, Tokyo
Gas officials said.
"By taking an equity stake, we can get a variety of insight
and we aim to expand our business in the natural gas value
chain," Isao Hosoya, Tokyo Gas' senior general manager of global
business development department, told reporters.
Tokyo Gas is not considering realising an LNG project from
the joint venture because of a lack of pipeline connection to an
existing LNG terminal, he said on the sidelines of a briefing on
(Reporting by Osamu Tsukimori; Editing by Miral Fahmy)