Tokyo Gas purchases 25% stake in Eagle Ford shale gas formation

According to Reuters, Tokyo Gas has purchased a 25% stake from VirTex Producing Co. in an Eagle Ford shale gas formation. Although the company has reportedly not provided a breakdown of the stake’s value, it did state that it is expecting to spend up to 8 billion yen (US$76.64 million) on the stake and associated drilling.

The project has already commenced commercial production, and is expected to provide a gas equivalent to 200 00 tpy of LNG output for a 20-year period.

In 2013, Tokyo Gas purchased a shale gas stake in the Barnett Basin in Texas, US, from Quicksilver Resources. This provided the company with a gas output equivalent to 0.35 – 0.5 million tpy of LNG output for US$485 million. Nonetheless, Reuters reports that falling energy prices have meant that the company has twice posted impairment losses for the project.

Edited from various sources by David Rowlands

Read the article online at: https://www.lngindustry.com/liquefaction/21062016/tokyo-gas-purchases-25-stake-in-eagle-ford-shale-gas-formation-2641/