Jera, the largest LNG importer and power generation company in Japan, has signed a deal with Williams and GEP Haynesville II to acquire 100% of their interests in the South Mansfield upstream assets in western Louisiana’s Haynesville Shale basin.
Jera Americas is making the acquisition through an upfront investment of US$1.5 billion.
Haynesville currently produces more than 500 million standard cubic feet per day ( scfd ) of natural gas and includes 200 undeveloped locations. The upstream assets are close to LNG terminals along the US Gulf Coast.
The transaction includes a future investment plan under which Jera will increase total production to 1 billion scfd. Jera says the acquisition’s strategic value is supported by robust current production and proven reserves, established gathering, treating and transport infrastructure, and proximity to the Gulf Coast LNG and data centre hubs.
It builds on Jera’s substantial and growing presence in the United States, including its recent announcement of the largest offtake of US LNG from a single buyer ( 5.5 million tonnes per year for 20 years ) and the Blue Point low-carbon ammonia development project. The Japanese company also owns, in whole or in part, ten power generation assets nationwide.
“The US energy sector is leading the way in the global LNG market and Jera’s investments have lined up accordingly,” says Jera Americas chief executive officer John O’Brien. “The upstream Haynesville acquisition is a strategic addition to our asset portfolio, enabling us to advance our unique supply chain expertise while deepening our commitment to Americas’ energy future.”
“The Haynesville acquisition substantially expands our partnerships in the United States,” adds Ryosuke Tsugaru, Jera’s chief low-carbon fuel officer. “The benefits are clear: enhanced diversification for Jera’s LNG value chain, expanded global reach across the gas value chain, and overall risk mitigation in a volatile energy market. The project, thus, clearly aligns with our strategic priorities and reinforces our core mission to provide a stable and secure energy supply globally.”
Established in 2015, Jera produces one-third of Japan’s electricity, and is one of the world‘s largest LNG buyers. The company has global reach throughout the energy supply chain, from participation in LNG upstream projects and fuel procurement through to fuel transportation and power generation.