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JERA will buy 100% of South Mansfield gas field

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Asset produces 500 MMscfd, includes 200 undeveloped

locations

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JERA plans to raise output to 1 Bscfd in future

(Adds comments, details in paragraph 2, 4-7, 9, 13, updates

bullets)

By Anton Bridge and Kantaro Komiya

TOKYO, Oct 23 (Reuters) -

JERA, Japan's top power generator, on Thursday said it will

buy natural gas production assets in the U.S. for $1.5 billion,

marking its entry into American shale gas production.

The company said with the deal, it is seeking to strengthen

its natural gas value chain, which it called an essential

transitional fuel as the world decarbonises. It said the

acquisition supports its strategy to build a diversified and

resilient asset portfolio.

JERA has agreed to buy 100% of the interests held by

pipeline operator Williams and GEP Haynesville II in the

South Mansfield gas field in western Louisiana's Haynesville

Shale basin. GEP Haynesville II is a joint venture between

GeoSouthern Energy, backed by Blackstone, and Williams.

The Haynesville asset produces more than 500 million

standard cubic feet per day (MMscfd) and includes 200

undeveloped locations.

JERA, Japan's biggest importer of liquefied natural gas,

plans to raise output there to 1 billion cubic feet per day

(Bscfd) in the future, it said.

It added that the deal offers strategic value, citing

proven reserves, established gathering, treating and transport

infrastructure and proximity to Gulf Coast LNG and data-center

hubs.

"The Haynesville acquisition substantially expands our

partnerships in the United States," said Ryosuke Tsugaru, JERA's

chief low-carbon fuel officer. "The benefits are clear: enhanced

diversification for JERA's LNG value chain, expanded global

reach across the gas value chain and overall risk mitigation in

a volatile energy market."

Williams separately announced a $1.9 billion investment in

Woodside Energy's ( WDS ) LNG production and export terminal

under construction in Louisiana.

Last month, Reuters reported that JERA was in advanced talks

to buy natural gas production assets in the U.S. for around $1.7

billion, the latest example of Japan investing in the energy

sector there.

JERA, a joint venture between Tokyo Electric Power ( TKECF )

and Chubu Electric Power ( CHUEF ), has been boosting its

exposure to U.S. assets, recently signing long-term offtake

deals totalling 5.5 million metric tons per year.

It also signed a letter of intent last month to potentially

take supplies from Alaska's $44 billion LNG export project.

The latest U.S. investment will give JERA greater control of

its supply chain as Japan prepares for surging power demand from

data centres amid the artificial intelligence boom.

In 2023, Japanese gas supplier Tokyo Gas ( TKGSF ) paid $2.7

billion to buy Texas-based natural gas producer Rockcliff

Energy.

(Reporting by Anton Bridge, Kantaro Komiya, Writing by Yuka

Obayashi; Editing by Muralikumar Anantharaman, Tom Hogue and

Thomas Derpinghaus.)