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(Sharecast News) - Mitsubishi Corporation has made its first entry into the US shale gas industry with the $5.2bn acquisition of Aethon Energy Management's assets in Texas and Louisiana.
The deal, which was struck between Aethon Energy Management and Aethon's existing stakeholders, including Ontario Teachers' Pension Plan and RedBird Capital Partners, is expected to close before the end of the first half, the Japanese trading and investment conglomerate announced on Friday.
The assets, mainly located in the Haynesville Shale formation across Texas and Louisiana, currently produce 2.1bn cubic feet per day of natural gas (equivalent to about 15m tonnes per year of LNG).
Aethon's natural gas is currently sold in southern markets across the US, though some volumes are being considered for export as LNG to Asia and Europe.
Mitsubishi already has an established presence within energy and power across North America, holding interests in an upstream shale gas development with Ovintiv in British Columbia, midstream marketing and logistics through CIMA Energy in Houston, LNG exports via LNG Canada and Cameron LNG, and power generation through Diamond Generating Corporation.
"This investment will not only strengthen the earnings base of MC's natural gas and LNG businesses, but also accelerate efforts to build an integrated value chain in the United States-from upstream gas development to power generation, data center development, chemicals production, and related businesses," Mitsubishi said in a statement.
Mitsubishi Corporation shares were down 2% at HPY4,055 by the close of play in Tokyo.
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