Japan's Mitsui buys U.S. gas asset in 'pragmatic solution' for energy transition
(Reuters) - Japan's Mitsui & Co Ltd has bought a 92% stake in an unconventional gas asset in Texas and plans to promote its gas business as a "pragmatic solution" for the energy transition, it said on Thursday.
Mitsui said it bought the stake from the operator of the asset, Silver Hill Eagle Ford E&P, for an undisclosed sum and aimed to produce over 200 million cubic feet of gas per day from the field.
The field had access to the U.S. Gulf Coast with liquefied natural gas (LNG) export terminals and ammonia plants, it added in a statement.
Mitsui said natural gas and LNG would play an important role in the transition to renewable energy, and the company would "continue to contribute to stable energy supply ... by further promoting our global natural gas and LNG businesses".
The deal comes after the Group of Seven rich nations over the weekend set big new collective targets for solar power and offshore wind capacity, agreeing to speed up renewable energy development and the phase-out of fossil fuels.
G7 energy and climate officials agreed that investments in the gas sector "can be appropriate" to address potential market shortfalls caused by Russia's invasion of Ukraine, if implemented in a manner consistent with climate objectives.
Energy-poor Japan wants to keep LNG as a transition fuel for at least 10 to 15 years. Germany and some other G7 members do not welcome new gas investments believing renewable energy development should be the priority.
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