DECEMBERASIA BUSINESS OUTLOOK8TOKYO GAS TO BUY ROCKCLIFF ENERGY FROM QUANTUM ENERGY PARTNERSZEEKR SHOWCASES INNOVATIVE FAST CHARGING BATTERIES FOR EVSA unit of Tokyo Gas has decided to buy Texas-based natural gas producer Rockcliff Energy from private equity firm Quantum Energy Partners for $2.7 billion to expand its overseas business, it said on Saturday.The deal comes as part of the Japanese company's efforts to expand its North American shale gas operations to meet the growing demand for natural gas as an energy transition fuel.Tokyo Gas, Japan's biggest city gas supplier, and other utilities are stepping up overseas expansion to counter falling demand in their domestic market. Japan has an aging population and a declining birthrate, while energy market reform has spurred competition among old-guard utilities.Under the deal, TG Natural Resources (TGNR) - 79 percent owned by Tokyo Gas - will buy all shares in Rockcliff Energy from Quantum Energy Partners. The deal is expected to close on Dec. 29, Tokyo Gas said.With the acquisition, TGNR's natural gas production will quadruple to 1.3 billion cubic feet per day from about 330 million cubic feet per day, making it one of the largest shale gas producers in Texas and Louisiana, according to Tokyo Gas."We expect our gas production will be more efficient after the acquisition as Rockcliff Energy's output area is located adjacent to TGNR's blocks," Takashi Nakao, senior general manager of global business development at Tokyo Gas, told reporters.The production is also close to new liquefied natural gas (LNG) export terminals and other facilities expected to increase demand for natural gas in the future, Nakao said. Zeekr, the premium electric vehicle brand of Chinese automaker Geely, unveiled lithium iron phosphate batteries that support fast charging on Dec 14.Zeekr is the latest manufacturer to introduce such a battery in a competitive market, as it seeks to reduce its reliance on third-party suppliers for the key component of electric vehicles, or EVs.The company said its upcoming 007 sedan would be the first model to be equipped with the batteries, which charge sufficiently in 15 minutes to reach a driving range of 500 km (300 miles), together with an 800-volt electric system, at a battery plant owned by Zeekr's parent Geely Holding Group in the province of Zhejiang. According to Reuters, Zeekr's Chinese rival Nio, which has also been developing its own battery technologies, plans to spin off its battery manufacturing unit to reduce costs.Zeekr's 001 crossover and 009 multipurpose vehicles (MPV) are powered by nickel-manganese-cobalt (NMC) batteries from CATL, the world's largest battery manufacturer. CATL has also released fast-charging batteries for use in Li Auto's first pure electric MPV MEGA, allowing for a 500 km (300 mile) driving range with a charging time of 12 minutes. NEWSROOM
< Page 7 | Page 9 >