Mitsubishi to Buy U.S. Shale Gas Business for $5.2 Billion — 2nd Update

By Kosaku Narioka

Mitsubishi Corp. has agreed to acquire a U.S. shale gas business for $5.2 billion, in an effort to secure U.S. energy assets as geopolitical uncertainties persist in exporters such as Venezuela and Iran.

The acquisition of shale gas assets in Texas and Louisiana is the Japanese company's biggest ever deal. The natural gas from the business is sold in the southern U.S. market, where demand is expected to rise, Mitsubishi said, adding that it is considering exporting part of the production as liquefied natural gas to Asia, including Japan, and Europe.

The Japanese trading house said Friday that it had agreed to acquire Aethon III LLC, Aethon United LP and related entities. These entities own shale gas interests and gas processing facilities, and also develop, produce and sell natural gas.

The deal comes as President Trump has sought to shore up the U.S.'s manufacturing base and increase energy exports, while pressing allies not to buy oil and gas from countries such as Russia.

Mitsubishi Chief Executive Katsuya Nakanishi said that owning U.S. assets was important for Japan's energy security, as supply has been unstable because of geopolitical events in Venezuela, Iran and Ukraine. He said that it would take time to restart nuclear reactors in Japan.

Demand for U.S. gas is expected to grow further, Mitsubishi said, driven by rising power needs from the artificial-intelligence sector and data centers, increasing demand from domestic industries such as manufacturing, and rising LNG exports.

Natural gas and LNG are gaining importance as stable and cost-competitive sources of energy, the Japanese company said.

The U.S. investment would strengthen Mitsubishi's natural gas business, and also accelerate its efforts to build a value chain in the country ranging from upstream gas development to power generation, data-center development, chemicals production and other related businesses, it said.

As part of a U.S. trade deal reached last year, Japan agreed to invest $550 billion in projects across strategic U.S. industries, including energy. A Mitsubishi spokesman said the acquisition of the shale gas business isn't part of Japan's pledged investment.

Mitsubishi said Aethon's shale gas assets produce about 2.1 billion cubic feet a day of natural gas, equivalent to about 15 million tons of LNG each year. The assets are primarily located in the Haynesville shale formation spanning Texas and Louisiana. Projected peak production of about 2.6 billion cubic feet a day corresponds to about 18 million tons annually on an LNG basis, equivalent to about one-quarter of Japan's annual LNG demand, the company said.

Mitsubishi plans to acquire the stakes in the Aethon entities from the Ontario Teachers' Pension Plan, RedBird Capital Partners and Aethon Energy Management.

Mitsubishi said it has also agreed for Dallas-based Aethon Energy to buy back up to 25% of the shale gas business's upstream and midstream interests. Aethon Energy said it formed an alliance with Mitsubishi to explore potential projects in areas including LNG, carbon capture, geothermal energy, data center and digital-infrastructure development.

The acquisition is expected to be completed in the April-June quarter, subject to customary regulatory approvals.

--Junko Fukutome in Tokyo contributed to this article.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

January 16, 2026 05:25 ET (10:25 GMT)