Taiwan's CPC Corp. eyes U.S. shale gas assets
- Potential deal could boost Taiwan's political leverage with U.S.
- Looks to tap into U.S. LNG expansion
- CPC explored possible bids for private equity-backed assets, including Haynesville shale field
Taiwan's state-owned energy company CPC Corp. is in early-stage discussions to buy shale-gas producing assets in the United States, three sources familiar with the matter said, in a bid to secure natural gas supplies to fuel Taiwan's economy.
If a deal is struck, CPC would join a growing list of Asian companies taking ownership of U.S. natural gas assets, gaining exposure to the commodity at a time that the United States is expanding its export capacity by building more liquefied natural gas plants.
Taiwan would also be gaining political leverage with the Trump administration, which has linked increasing imports of U.S. energy with tariff policy.
CPC explored in recent months bids for assets held by public and private equity-backed gas producers active in shale formations that are well connected to existing or upcoming LNG plants, such as the Haynesville shale field of east Texas and Louisiana, the sources said.
It has also considered bids for assets in mature plays like the Marcellus in the Appalachian Basin, which have attracted more buyer interest in recent years as technological advancements have allowed operators to extract more hydrocarbons at lower drilling costs, the sources added.
CPC did not respond to a request for comment.
The sources cautioned that any deal was not guaranteed, and CPC could still buy assets somewhere else. They requested anonymity to discuss confidential deliberations.
Taiwan's LNG imports have been rising steadily over the last 15 years, according to data from ship tracker Kpler, hitting a record 21.78 MM tonnes (t) in 2024.
Energy security. Some Asian companies, including CPC, have already bought stakes in various U.S. LNG plants. Ownership in gas producing assets can be a way for them to secure supply of the fuel to these plants.
In March, the Taiwanese company signed an agreement with Alaska Gasline Development Corp. to buy LNG and invest in the Alaska LNG project which will transport gas south from Alaska's remote north via pipeline, to be shipped as LNG to Taiwan, Japan and South Korea (learn more). Taiwan's President Lai Ching-te said this would ensure the island's energy security.
CPC has also expressed interest in acquiring parts of private equity-backed Aethon Energy Management's Haynesville assets, one of the sources said. Aethon is currently in talks to sell the entire company to Japanese conglomerate Mitsubishi Corp, although a deal is not guaranteed, sources said.
Aethon declined to comment.
The Haynesville produces around 15.4 Bft3d, according to the latest data from the U.S. Energy Information Administration (EIA), making it the third-largest gas producing region in the country, and an attractive option to foreign buyers and investment firms.
The Appalachian Basin, meanwhile, is the largest gas-producing region in the U.S., with output of 36.4 Bft3d, according to the EIA.
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