Chevron in talks to offload Texas gas assets to Tokyo Gas for up to $1B - report

Oct. 08, 2024  By: Preeti Singh, SA News Editor

Chevron (NYSE:CVX) is in talks to sell its east Texas natural gas assets to Tokyo Gas for up to $1B, the Financial Times reported on Tuesday, citing three people familiar with the discussions.

Talks over a potential deal for Chevron’s (CVX) portfolio in the Haynesville shale have been ongoing for months, the people said, as the Japanese utility looks to boost its access to abundant U.S. reserves of the fuel and secure supplies for its home nation, which relies on fossil fuel imports to support its energy requirements.

Tokyo Gas gained access to the Haynesville basin last December through a $2.7B deal for Rockcliff Energy. The utility is already a key producer in the basin, generating about 1.3B cubic feet a day of gas there.

For Chevron (CVX), a deal would mark another step in its multibillion-dollar divestment plan as it looks to close its $53B acquisition of Hess. The energy major is looking to unload $10B to $15B of non-core assets by 2028 in an effort to optimize its global energy portfolio.

In a March filing with the Securities and Exchange Commission, the company said it was “evaluating strategic opportunities” for its Haynesville acreage.

The said assets include 72,000 acres of mostly undeveloped land, but it currently remains unclear how much gas the land is believed to hold.

The report comes shortly Chevron (CVX) agreed to sell some of its Alberta assets worth $6.5B to Canadian Natural Resources.