Mitsui Snaps Up Gassy Eagle Ford Hawkville Leasehold, Touts LNG Export Potential

日本又出海買上游產(chǎn)業(yè)了

2023 0424?

Japan’s Mitsui & Co. Ltd. has added an upstream foothold in the Eagle Ford Shale of South Texas, with plans to serve LNG export demand, as well as low-carbon ammonia and methanol production on the Gulf Coast. The Tokyo-based conglomerate said Thursday it has completed the acquisition of a roughly 92% working interest in an unconventional natural gas-rich asset within the Eagle Ford’s Hawkville field. Mitsui purchased the asset from operator Silver Hill Eagle Ford E&P LLC, a subsidiary of Silver Hill Energy Partners LP. [Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to LNG Insight.] Mitsui is aiming for “stable gas production” of more than 200 MMcf/d from the unconventional onshore acreage, with subsidiary Mitsui E&P USA LLC as operator. “Mitsui is also promoting liquefaction and export of U.S. natural gas to global markets, and?methanol production businesses using natural gas as feedstock,” management said. “In addition to proactively pursuing upstream development projects, we will strengthen the natural gas value chain, including adjacent businesses, and work toward achieving further low-carbon solutions and decarbonization” by using carbon capture and storage, or CCS, and other measures. “Mitsui believes that natural gas and LNG will play an important role as a ‘pragmatic solution’ for energy transition, and we will continue to contribute to stable energy supply, enhanced quality of life, and sustainable development of society by further promoting our global natural gas and LNG businesses.” The Eagle Ford has been attracting merger and acquisition interest among large upstream players seeking to shore up drilling inventory and secure access to Gulf Coast export markets. Canada’s Baytex Energy Corp., Houston-based Marathon Oil Corp. and Lower 48 heavyweight Devon Energy Corp. each have announced Eagle Ford acquisitions over the past year. The South Texas play saw a surge in drilling permits issued last month, according to data from Evercore ISI. The Energy Information Administration, meanwhile, is forecasting Eagle Ford gas output to rise by 55 MMcf/d in May versus April.