Tokyo Gas Plans Acquisition of US Natural Gas Producer for 6 Trillion Won

[Asia Economy Reporter Kwon Haeyoung] Tokyo Gas of Japan is reportedly pursuing a plan to acquire Rockcliff Energy, a U.S. natural gas production company, for $4.6 billion (approximately 5.9 trillion KRW), according to major foreign media on the 4th (local time).

Tokyo Gas is negotiating the acquisition of Rockcliff Energy through TG Natural Resources, in which it holds a 70% stake. Currently, the private equity firm Quantum Energy Partners owns Rockcliff Energy, and TG Natural Resources is expected to announce this month a plan to acquire it entirely in cash, including debt.

To raise funds for this acquisition, TG Natural Resources is pursuing financing from banks and private credit providers.

In a situation where dependence on raw material imports is increasing after the Ukraine war, if this deal is finalized, Japan will be able to further strengthen its independent natural gas supply base. Rockcliff Energy produces more than 1 billion cubic feet of natural gas per day from the Haynesville Shale, which spans Louisiana and eastern Texas.

Upon acquiring Rockcliff Energy, TG Natural Resources' natural gas production volume is also expected to increase significantly. As of June last year, TG Natural Resources was producing 330 million cubic feet of natural gas per day from the Haynesville Shale.