June 16 (Reuters) - Mitsubishi Corp ( MSBHF ) is in talks

to acquire the U.S. shale production and pipeline assets of

Aethon Energy Management for roughly $8 billion, a person

familiar with the matter said on Monday.

A deal would give the Japanese conglomerate a substantial

natural gas operation adjacent to the U.S. Gulf coast and the

energy export facilities being developed along it.

Talks between Mitsubishi ( MSBHF ) and Aethon are ongoing, said the

source, who cautioned that there was no guarantee a transaction

would be agreed, and spoke on condition of anonymity to discuss

confidential deliberations.

While the assets are owned and operated by U.S.

energy-focused investment firm Aethon, fellow money managers

RedBird Capital Partners and Canada's Ontario Teachers' Pension

Plan also hold sizable stakes.

Mitsubishi ( MSBHF ), Aethon, RedBird and the Ontario pension plan

declined to comment.

Shares in Mitsubishi ( MSBHF ) edged lower in early Tuesday trading in

Tokyo following the news, down 0.3% to 2,880 yen, compared with

a 0.3% gain in the broader benchmark Nikkei 225 index.

Mitsubishi ( MSBHF ) is a major player in the global LNG sector,

engaging across the full value chain - from upstream production

to trading, marketing, and logistics. It holds equity in

multiple LNG projects worldwide, including stakes in Malaysia,

Oman, Australia, Russia, the U.S., and Canada, with total equity

LNG production of about 13 million metric tons per year.

The upstream assets of Aethon, which primarily focus on the

Haynesville shale formation in Louisiana and East Texas,

constitute one of the largest privately held U.S. gas producers.

Reuters reported in November that Aethon was exploring

options for its operations, which also include more than 1,400

miles (2,250 km) of pipelines across the Haynesville basin and

Wyoming, where Aethon also has some production assets.

Bloomberg News earlier on Monday reported the talks between

Mitsubishi ( MSBHF ) and Aethon, citing people familiar with the matter.

(Reporting by David French in New York; Additional reporting by

Yuka Obayashi in Tokyo; Editing by Alison Williams and

Muralikumar Anantharaman)