Key Facts
• On October 23, JERA announced its first acquisition of U.S. shale gas rights.
• The acquisition cost is approximately $1.5 billion (¥230 billion).
• The rights cover the South Mansfield gas field in Louisiana, spanning 210 square kilometers.
• The field currently produces 500 million cubic feet of gas daily from 200 wells.
• By 2030, JERA plans to invest further, doubling production to 1 billion cubic feet daily.
• The field holds an estimated 3 trillion cubic feet of gas reserves.
• JERA has already contracted to procure 5.5 million tons of LNG annually from the U.S.
• The expanded production could equate to 7 million tons of LNG annually.
• The gas field benefits from proximity to pipelines and LNG export facilities.
• Tokyo Gas and Osaka Gas also hold shale gas rights in the U.S., pursuing similar strategies.
• JERA aims to build a value chain from U.S. gas fields to domestic LNG power generation.
• This strategy seeks to enhance revenue and ensure stable energy supply.
Summary
JERA, Japan’s largest thermal power producer, has announced its first acquisition of U.S. shale gas rights for $1.5 billion. The South Mansfield gas field in Louisiana, spanning 210 square kilometers, currently produces 500 million cubic feet of gas daily. JERA plans to double production by 2030 through additional investments. The field’s strategic location near pipelines and LNG export facilities enhances its value. This acquisition aligns with JERA’s strategy to establish a comprehensive value chain, linking U.S. gas fields to domestic LNG power generation. Similar strategies are being pursued by Tokyo Gas and Osaka Gas, highlighting a broader trend among Japanese energy firms. JERA’s approach aims to boost revenue while ensuring a stable energy supply for Japan.
