Mitsui & Co Acquires 92% Of a US Gas Facility

Mitsui & Co Ltd of Japan has purchased a 92% share in an unconventional gas asset in Texas and wants to promote its gas business as a "pragmatic solution" for the energy transition, the company announced on Thursday.

Mitsui said it paid an unknown sum for the interest from the asset's operator, Silver Hill Eagle Ford E&P, and aimed to produce more than 200 million cubic feet of gas per day from the field.

The field had access to the US Gulf Coast via LNG export terminals and ammonia facilities, according to a statement.

Natural gas and LNG, according to Mitsui, will be vital in the transition to renewable energy, and the company will "continue to contribute to stable energy supply... by further promoting our global natural gas and LNG businesses."

The agreement comes after the Group of Seven affluent nations set new collective targets for solar power and offshore wind capacity over the weekend, vowing to accelerate renewable energy growth and the phase-out of fossil fuels.

G7 energy and climate ministers agreed that investments in the gas industry "can be appropriate" to meet any market deficits caused by Russia's invasion of Ukraine if done in a way that is consistent with climate goals.

Energy-poor Japan intends to use LNG as a transition fuel for at least the next 10 to 15 years. Germany and some other G7 members oppose further gas investments, saying that renewable energy development should take precedence.