Japan’s largest power generator JERA, a 50-50 joint venture between TEPCO Fuel & Power, a wholly owned subsidiary of Tokyo Electric Power Company, and Chubu Electric Power, has agreed to acquire natural gas production assets in Louisiana’s Haynesville Shale for $1.5 billion, venturing into upstream operations for the first time as it seeks greater control over its fuel supply chain.
The Tokyo-based utility will purchase the South Mansfield field from Williams and GEP Haynesville II—a joint venture between Blackstone-backed GeoSouthern Energy and Williams—through subsidiary JERA Americas. The asset currently produces more than 500 million cubic feet of gas daily from roughly 52,000 acres and includes 200 undeveloped drilling locations.
JERA said it plans to double production to 1 billion cubic feet per day through additional investment, though the company provided no timeline or cost estimates for the expansion. The field’s proximity to Gulf Coast liquefied natural gas terminals offers potential offtake advantages, yet JERA will face the challenge of ramping up output in a mature basin where drilling costs can escalate.
The acquisition extends JERA’s U.S. expansion following recent commitments to purchase 5.5 million tonnes of American LNG annually. Williams will continue gathering gas from the field while GEP retains operational management under a contract agreement. The utility, a joint venture of Tokyo Electric Power and Chubu Electric Power, supplies about one-third of Japan’s electricity.
The transaction requires approval from the Committee on Foreign Investment in the United States and is expected to close by year-end.
