Tokyo Gas America will raise its ownership stake in Castleton Resources to about 70% from 46% following completion of the deal
Tokyo Gas America will also acquire a 500MW Aktina solar power project in the US. (Credit: Gerd Altmann/Pixabay)
Japan-based natural gas provider Tokyo Gas has announced plans to acquire additional oil and gas assets in Louisiana through Castleton Resources.
Tokyo Gas America will acquire the assets through its ownership stake in Castleton Resources.
With an additional equity capital from Tokyo Gas America, a wholly owned subsidiary of Tokyo Gas, and CCI, Castleton Resources will provide funding to close the deal that is planned on 14 August this year.
Upon completion of the deal, Tokyo Gas America will raise its ownership stake in Castleton Resources to about 70% from 46%.
As the majority stake in Castleton Resources will be held by Tokyo Gas America, Castleton Resources will change its name to TG Natural Resources by late March 2021.
Tokyo Gas America president and CEO Kazuya Kurimoto said: “Tokyo Gas America participated in Castleton Resources in May 2017, and have grown steadily with Castleton Resources by acquiring shale and tight sand assets since then.
“We are pleased that Castleton Resources has joined Tokyo Gas group companies, and with Castleton Resources as the base, we will continue to aim for further business expansion in East Texas and Louisiana.”
Tokyo Gas to acquire 500MW Aktina solar project in US
Separately, Tokyo Gas America has also announced plans to acquire a 500MW Aktina solar power project in the US, from a renewable power projects developer, Hecate Energy for about JPY49bn ($466.6m).
Construction on the solar project will start in the third quarter of the year and will commence operations in the mid of 2021.
The acquisition, which is planned to be concluded on 5 August, will increase Tokyo Gas’ renewable energy assets owned or under contract to 1.2GW, as the company aims for 5GW by 2030.
In April last year, Tokyo Gas agreed to establish a 50/50 joint venture with French energy company Engie to develop renewable energy projects in Mexico.