Tokyo Gas to purchase U.S. natural gas producer for $4.6 billion

(Bloomberg) — A Tokyo Gas Co. unit is in advanced talks to buy U.S. natural gas producer Rockcliff Energy in a deal worth about $4.6 billion, including debt, a person with knowledge of the matter said.

Houston-based TG Natural Resources, which is majority-owned by Tokyo Gas, is discussing purchasing Rockcliff from private equity firm Quantum Energy Partners, said the person, who requested anonymity discussing confidential information. An all-cash deal could be announced as soon as this month, though it’s possible — as with all deals that aren’t finalized — that terms change or talks collapse.

Representatives for Quantum Energy Partners and Tokyo Gas declined to comment. Rockcliff didn’t immediately respond to an email seeking comment.

This is the latest move by an Asian firm to secure natural gas supply amid the global energy crisis. Tokyo Gas purchases liquefied natural gas from the U.S. Procuring a producer like Rockcliff gives it exposure to upstream prices.

Inpex Corp., Japan’s top gas explorer, inked a deal last month to procure LNG from a U.S. project for 20 years. Jera Co., Japan’s top power producer, bought a $2.5 billion stake in a U.S. LNG exporter in 2021.

Bloomberg reported last year that Rockcliff was weighing its possible sale worth $4 billion or more. Founded in 2015, the company pumps the daily equivalent of more than 1 Bcfg from the Haynesville Shale in East Texas.