In recent years, Sumitomo, a Japanese trading firm, has been planning to expand its presence in the U.S. shale patch. Despite exiting shale production operations three years ago, the company is now looking to play a more prominent role in U.S. shale without returning to production. Sumitomo’s strategy involves increasing sales of pipelines used in U.S. shale fields and leveraging its strength in related businesses rather than directly returning to production in America.
According to Sumitomo President Shingo Ueno, the company recognizes the importance of shale as a natural resource in the U.S. and is interested in expanding its presence in this sector. This strategy contrasts with other Japanese firms that have recently acquired U.S. shale assets as part of the ongoing consolidation wave in the American oil and gas industry, which typically involves direct production activities rather than focus on supporting services like pipelines or exploration and development projects like TGNR’s or Mitsui & Co.’s recent acquisitions do.
Tokyo Gas Co., Ltd has been expanding its upstream business in the U.S., through its subsidiary TG Natural Resources LLC (TGNR). The company aims to acquire superior assets around its existing holdings in Texas and Louisiana, signaling a growing interest from Japanese firms in the U.S. shale industry.
Mitsui & Co., another Japanese firm, recently completed an acquisition of an unconventional gas asset named Tatonka from Sabana, LLC and Vanna, LLC with access to the Gulf Coast industrial area including LNG export terminals and ammonia plants.
These partnerships and acquisitions highlight how Japanese firms are increasingly looking at opportunities within the U.S
