Japan’s Mitsubishi Corporation has announced it will acquire natural gas interests in the United States. The acquisition is one of the biggest ever by a Japanese trading house and comes amid a US demand that Japan purchase more energy from the country.
Mitsubishi said it agreed to acquire all equity interests in companies collectively referred to as Aethon at a news conference in Tokyo on Friday. It also said it will take over Aethon’s business and natural gas interests.
The total acquisition cost, including assumed debt, is expected to exceed 1.18 trillion yen, or about 7.5 billion dollars.
Aethon is advancing natural gas development projects in the southern US states of Texas and Louisiana. The planned peak production capacity when converted to LNG is about 18 million tons per year, equivalent to about one-quarter of Japan’s annual demand.
Mitsubishi is considering expansion of its sales channels in the US and increasing LNG exports to Asian countries, including Japan, as the US administration of President Donald Trump is urging Japan to buy more US energy. The company also aims to achieve stable energy supply in the country.
Mitsubishi President and CEO Nakanishi Katsuya said that amid rising electricity demand driven by advances in AI and other factors, some regions are facing supply concerns due to heightening geopolitical risks.
He said holding upstream assets in US natural gas production holds significance for Japan’s energy security.
