A potential $8 billion deal could give Mitsubishi Corp. control of major US shale gas operations, as the Japanese conglomerate pursues Aethon Energy Management‘s production and pipeline assets, Bloomberg reported on Monday, citing people familiar with the matter.
The potential deal would provide Mitsubishi with major natural gas operations near the US Gulf Coast, giving the company access to the region’s growing energy export infrastructure, the source said, speaking on condition of anonymity to discuss confidential deliberations.
Aethon’s operations center on the Haynesville shale formation in Louisiana and East Texas, where the company ranks among America’s largest privately held gas producers. The assets encompass more than 1,400 miles of pipelines spanning the Haynesville basin and Wyoming.
Negotiations between the companies continue, though the source warned that no deal is guaranteed.
While Aethon owns and operates the assets, investment firms RedBird Capital Partners and Canada’s Ontario Teachers’ Pension Plan maintain substantial ownership positions.
The companies have not commented on the discussions.
If completed, the transaction would mark Mitsubishi’s largest acquisition and bolster its global liquefied natural gas portfolio. The Japanese firm maintains equity stakes in LNG projects spanning Malaysia, Oman, Australia, Russia, the US, and Canada, producing roughly 13 million metric tons per year through these investments.
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