Tokyo Gas Focuses on Expanding Investment Opportunities in the US
Tokyo Gas Focuses on Expanding Investment Opportunities in the US
Tokyo Gas Eyes More Investment Opportunities in the US
Tokyo Gas Co. plans to seek additional investment opportunities in the US, building on a series of acquisitions it has already made in the country.
Japan’s largest gas utility will explore a wide range of potential investments, including upstream sectors like shale gas and renewable energy, as well as midstream targets such as marketing and trading assets and battery projects, Tokyo Gas President Shinichi Sasayama said in an interview.
“North America is an especially important growth market for us among our overseas businesses,” Sasayama stated. The company will focus on investments that can withstand market volatility and remain profitable, he added.
In recent years, Tokyo Gas has significantly expanded its US portfolio. In late 2023, its US subsidiary acquired Rockcliff Energy II LLC, a Texas-based natural gas company, for approximately $2.7 billion to bolster its shale gas operations. Additionally, in February 2024, the company purchased a 49% stake in Arm Energy Trading LLC, a gas marketing and trading firm.
The renewed focus on the US coincides with political shifts, as President Donald Trump, inaugurated on Monday in Washington, has pledged to expand domestic fossil fuel production and impose trade tariffs. This has prompted nations like South Korea and Vietnam to explore increased American energy imports to align with the new administration.
When asked whether Japanese LNG importers, including Tokyo Gas, should adopt a similar approach, Sasayama emphasized the importance of evaluating contracts based on factors like price and flexibility.“If the projects meet favorable conditions, including pricing, the US could be a very important supply source,” he said. “However, if prices are excessively high, we may consider other sources,” he added, noting that the company will monitor the impact of Trump’s energy policies.
Activist investor Elliott Investment Management, which disclosed a 5% stake in Tokyo Gas in November 2024, has called on the utility to divest its multi-billion-dollar real estate portfolio, citing minimal overlap with its core energy business. Tokyo Gas later announced it would explore measures to unlock the value of assets with low capital efficiency.
Despite this, Tokyo Gas remains committed to ESG-oriented real estate development. Sasayama highlighted the potential of combining real estate assets with energy systems that promote resilience and renewable power integration, stating, “This approach will increase the value of the property or land.”
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