Mitsui & Co Ltd, a Japanese trading company, has acquired a 92% stake in an unconventional gas asset in Texas, as reported Thursday.
Recent acquisition of Mitsui to strengthen its global natural gas and LNG business
The company intends to expand its gas business and promote it as a pragmatic solution for the energy transition. Mitsui aims to produce more than 200 million cubic feet of gas per day from the field, which has access to liquefied natural gas (LNG) export terminals and ammonia plants on the U.S. Gulf Coast.
In a statement, Mitsui expressed its belief that natural gas and LNG will play a crucial role in the transition to renewable energy, and that the company plans to contribute to a stable energy supply by promoting its global natural gas and LNG business. The acquisition comes shortly after the G7 countries announced collective targets for offshore solar and wind capacity, underscoring their commitment to the development of renewable energy and a move away from fossil fuels.
G7 favors renewable energy over fossil fuels
While some G7 members oppose new gas investments and prioritize the development of renewable energy, others see gas investments as an appropriate solution to address potential market shortages caused by Russia’s invasion of Ukraine. Energy-starved Japan wants to keep LNG as a bridge fuel for at least 10 to 15 years, and the Mitsui acquisition is consistent with that goal.
By acquiring a 92% stake in an unconventional gas asset in Texas, Mitsui & Co Ltd is positioning itself as a major player in the production and promotion of natural gas and LNG. Although some G7 members have announced their intention to favor renewable energy over fossil fuels, Mitsui remains convinced that natural gas and LNG are crucial solutions for the energy transition. This acquisition is also in line with Japan’s objective to keep LNG as a transitional fuel in the years to come.
