NEW YORK, Japan’s largest power producer, JERA, is close to securing a deal to acquire U.S. natural gas assets worth about US$1.7 billion, sources familiar with the matter said, underscoring Japan’s growing push into America’s energy sector.
According to the sources, JERA has emerged as the leading bidder for assets owned by GEP Haynesville II — a joint venture between Blackstone-backed GeoSouthern Energy and pipeline operator Williams Companies. Banks recently invited offers, and JERA’s bid outpaced several U.S. energy companies. While advanced, the discussions remain private and a final agreement has yet to be reached. GEP could still consider other suitors or cancel the sale.
If completed, the deal would mark JERA’s first direct move into U.S. shale gas production, giving the company — one of the world’s biggest liquefied natural gas (LNG) importers — greater control over its supply chain. The shift comes as Japan braces for a sharp rise in electricity demand driven by data centers powering artificial intelligence development.
Japan, which relies heavily on imported energy, has intensified efforts to diversify supplies since Russia’s invasion of Ukraine disrupted global markets. Washington has also encouraged Asian allies to increase U.S. energy purchases, with Tokyo recently committing US$7 billion annually under a new trade agreement.
JERA, a joint venture between Tokyo Electric Power Co and Chubu Electric Power, has already stepped up its U.S. LNG involvement this year, including signing a letter of intent for potential supplies from Alaska’s proposed US$44 billion LNG export project. Japan has also engaged consultancy Wood Mackenzie to study the viability of the 1,300km Alaska pipeline and LNG plant.
The Haynesville shale basin, spanning Texas and Louisiana, is among the U.S.’s top natural gas producers, prized for its proximity to Gulf Coast LNG export facilities. GEP Haynesville II currently produces about 317.5 million cubic feet per day (mcfd) and is expected to nearly double output to 614 mcfd by 2028, according to Rystad Energy.
Private equity-backed GEP previously sold assets from the same basin to Southwestern Energy in 2021 for US$1.85 billion, capitalising on a surge in U.S. gas prices at the time. Neither JERA, GeoSouthern, nor Williams responded to requests for comment.
