Chevron (CVX, Financial) is negotiating with Tokyo Gas for the sale of its natural gas assets in eastern Texas, potentially valuing the deal at up to $1 billion, according to insiders. This transaction focuses on Chevron's holdings within the Haynesville Shale field. Tokyo Gas aims to boost its access to U.S. fuel reserves, essential for Japan's energy supply given its reliance on imported fossil fuels.
In December, Tokyo Gas expanded its presence in the Haynesville Basin by acquiring Rockcliff Energy for $2.7 billion. Already a major producer in the area, Tokyo Gas generates around 1.3 billion cubic feet of natural gas daily from the basin.
This potential deal aligns with Chevron's divestment strategy, which seeks to optimize its global energy portfolio. The company plans to sell $10 billion to $15 billion of non-core assets by 2028 and is pursuing a $53 billion acquisition of Hess (HES). In March, Chevron disclosed to the U.S. Securities and Exchange Commission that it was evaluating strategic options for its Haynesville assets. These include 72,000 acres of mostly undeveloped land, though the precise natural gas reserves on this land remain unspecified.
The report comes after Chevron's agreement to sell some of its Alberta assets, valued at $6.5 billion, to Canadian Natural Resources (CNQ).
