Tokyo Gas unit close to $4.6B deal for US natgas producer: report
Oil expert warns nat gas prices will soar this winter
Lipow Oil Associates President Andy Lipow argues releasing the Strategic Petroleum Reserve is the only ‘concrete action’ that the Biden administration has taken to lower prices at the pump.
A unit of Tokyo Gas Co. is in advanced talks to buy U.S. natural gas producer Rockcliff Energy for about $4.6 billion, according to people familiar with the matter.
Rockcliff is owned by private equity firm Quantum Energy Partners.
A deal is considered important for the import-dependent Asian nation after supply markets for the commodity were roiled by Russia's invasion of Ukraine.
The all-cash deal involves Houston-based TG Natural Resources, which is 70% owned by the Japanese energy firm.
IS A NATURAL GAS CRISIS COMING?
Railway tracks in front of Tokyo Gas Co. storage tanks in Yokohama, Japan. (Photographer: Toru Hanai/Bloomberg via Getty Images / Getty Images) Castleton Commodities International (CCI) owns the rest of TG Natural Resources. A deal could be announced this month, however no deal was guaranteed and talks could end without an agreement, according to the report. US GOVERNMENT SAYS ALL AMERICANS WILL PAY MUCH MORE FOR NATURAL GAS THIS WINTER Quantum and CCI declined to comment. Rockcliff and TG Natural Resources did not immediately respond to requests for comment. Tokyo Gas was not immediately available to comment. Rockcliff produces more than 1 billion cubic feet per day of natural gas from the Haynesville shale formation, which stretches across Louisiana and East Texas. The Tokyo Gas logo is seen on a Redmi phone screen in this photo illustration. (Photo by STR/NurPhoto via Getty Images / Getty Images) Quantum originally backed the Rockcliff management team with a $350 million investment in 2015. Russia's invasion of Ukraine has cut gas supply flows to Europe and led European nations to import record amounts of LNG cargoes, straining global supplies and elevating prices. The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia. ( (AP Photo, File) / AP Newsroom) Resource-poor Japan has been working to diversify from Russia's Sakhalin project, which accounts for 9% of Japan's total LNG imports of 74.3 million tonnes per year. CLICK HERE TO READ MORE ON FOX BUSINESS In 2021, Japan imported 7.1 million tonnes of LNG from the United States, accounting for 9.5% of its total imports. Reuters contributed to this report. Source: Read Full Article
Ticker Security Last Change Change % UNG UNITED STATES NATURAL GAS FUND LP UNIT (POST REV SPLIT) 12.78 -1.32 -9.36% 