Jera to Acquire Shale Gas Biz Rights in U.S. for 1.5 B. Dlrs

Tokyo, Oct. 23 (Jiji Press)–Jera Co., Japan’s largest power generation company, said Thursday that it will finalize a deal worth about 1.5 billion dollars with U.S. energy companies to acquire their rights in shale gas development and production in Louisiana. Jera is set to participate in the shale gas business for the first time, aiming to enhance the liquefied natural gas procurement and supply system. Through the deal, Jera is expected to gain a production capacity of around 500 million cubic feet of shale gas per day, equivalent to some 3.5 million tons of LNG per year. Jera plans to expand the production capacity to double to about 1 billion cubic feet of shale gas by around 2030, anticipating sales within the United States, where demand for electricity to power data centers is expected to increase. On sales in the Asia region including Japan, Kosuke Tanaka, head of Jera’s LNG business, told an online press conference, “We don’t have any specific plans at this point, but there is a possibility in the future.” Having finalized 20-year deals in June to procure up to 5.5 million tons of LNG annually from the United States, Jera has strengthened its presence in the country. END [Copyright The Jiji Press, Ltd.]