Japanese power generation company JERA, through its subsidiary JERA Americas, has signed an agreement with Williams and GEP Haynesville II to acquire full interests in the South Mansfield upstream asset in the Haynesville Shale basin in Louisiana, US.
This acquisition is valued at $1.5bn (Y228.87bn) and aligns with JERA’s strategy to diversify and strengthen its asset portfolio.
The Haynesville asset, currently producing more than 500 million standard cubic feet per day (mscf/d), includes 200 undeveloped locations.
JERA plans to boost production to one billion standard cubic feet per day (bscf/d) through future investments.
The deal is supported by existing gathering, treating and transport infrastructure and proximity to Gulf Coast liquefied natural gas (LNG) and data centres.
JERA Americas CEO John O’Brien said: “The US energy sector is leading the way in the global LNG market and JERA’s investments have lined up accordingly.
“The upstream Haynesville Acquisition is a strategic addition to our asset portfolio, enabling us to advance our unique supply chain expertise while deepening our commitment to America's energy future.”
As part of the transaction, Williams will divest its minority interest for $398m, along with deferred payments until 2029, based on development milestones.
GEP Haynesville II will sell its majority interest but will continue to manage the asset under a Contract Operating Agreement.
Williams will maintain its role in gathering natural gas from South Mansfield, enhancing its Louisiana Energy Gateway system to support increased production.
This transaction is expected to close by the end of 2025, pending customary closing conditions and approval from the Committee for Foreign Investments in the US.
The acquisition is said to further extend JERA’s presence in the US, complementing its existing power generation assets and LNG offtake agreements.
JERA chief low-carbon fuel officer Ryosuke Tsugaru said: “The Haynesville acquisition substantially expands our partnerships in the US.
“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.
“The project thus clearly aligns with our strategic priorities and reinforces our core mission to provide a stable and secure energy supply globally.”
In a separate move, Williams has partnered with Woodside Energy to invest in the Louisiana LNG project, acquiring an 80% stake in the Driftwood Pipeline.
This partnership involves the construction of a greenfield pipeline and a 10% interest in Louisiana LNG, with a commitment to supply 1.5 million tonnes per annum of LNG.
Williams’ investment in the pipeline and LNG facilities is projected to be $1.9bn.
Williams president and CEO Chad Zamarin said: “These transactions mark an important step forward in Williams’ wellhead to water strategy – integrating upstream, midstream, marketing and LNG capabilities to deliver the cleanest, most reliable energy to global markets.
“We are thrilled to partner with Woodside and create a strategic relationship with JERA, and together, reinforce and strengthen our collective roles as trusted providers of low-carbon energy solutions that meet growing global demand.”
