Japanese energy company JERA, through its subsidiary JERA Americas, announced the purchase of a 100% interest in the South Mansfield asset, located in the Haynesville shale gas basin in western Louisiana. This transaction is part of a broader expansion strategy in the U.S. upstream sector.
Acquisition of gas assets in Haynesville
With an initial investment of $1.5 billion, the company will access an asset that currently produces more than 500 million cubic feet per day of natural gas. The deal includes 200 undeveloped locations, which will allow production to double to 1,000 MMscfd in future phases.
JERA noted that this acquisition strengthens its global liquefied natural gas value chain. liquefied natural gas (LNG) (LNG) value chain, improving integration between production, transportation and power generation. The asset’s proximity to gathering, processing and export hubs in the Gulf Coast reinforces its strategic value.
JERA Americas CEO John O’Brien explained that the acquisition positions the company in a key segment of the U.S. energy market, while enhancing its ability to respond to international demand for LNG.
The agreement with Williams Upstream Holdings and GEP Haynesville II consolidates JERA’s presence in the North American market. The company participates in ten generation assets in the U.S. and recently signed a contract to import 5.5 million tons per year of LNG for 20 years, considered one of the largest single purchase agreements in the country.
Ryosuke Tsugaru, JERA’s director of low-carbon fuels, remarked that the acquisition allows it to mitigate risks associated with global energy volatility by diversifying its supply portfolio with strategically located assets and proven reserves.
The acquired asset comprises approximately 210 square kilometers within the Haynesville and Mid-Bossier formations, one of the most productive shale gas areas in the U.S. Closing of the transaction remains subject to customary regulatory approvals.
Source and photo: JERA
