Japan’s leading power generator, JERA Co., Inc., is in advanced negotiations to acquire natural gas production assets in the United States for approximately $1.7 billion, according to sources familiar with the matter. This move underscores Japan’s strategic efforts to secure energy resources amid global market volatility and rising demand. The assets in question are owned by GEP Haynesville II, a joint venture between Blackstone-backed GeoSouthern Energy and pipeline operator Williams Companies. JERA has emerged as the top bidder, outpacing several U.S.-based energy firms, though the deal remains subject to finalization. This acquisition would mark JERA’s first venture into shale gas production, granting the world’s largest liquefied natural gas (LNG) buyer greater control over its supply chain. The deal aligns with Japan’s broader strategy to diversify energy sources, particularly in light of Russia’s invasion of Ukraine, which disrupted global energy markets. Additionally, the U.S.-Japan trade agreement, finalized earlier this month, commits Japan to $7 billion in annual energy purchases from the U.S., further bolstering bilateral energy ties. GEP Haynesville II, a major producer in the Haynesville shale basin spanning Texas and Louisiana, is expected to nearly double its output by 2028, according to Rystad Energy. The Haynesville basin’s proximity to LNG export facilities on the U.S. Gulf Coast has made it a highly sought-after asset. While JERA declined to comment, the potential acquisition highlights Japan’s growing reliance on U.S. energy resources to meet its domestic needs and support its technological advancements, including the AI-driven surge in data center power demand.
Exclusive: Japan’s JERA in advanced talks to buy $1.7 billion of US shale gas assets, sources say
