Wedoany.com Report-Oct. 23, Japan’s leading power generator, JERA, announced on Thursday that it will acquire natural gas production assets in the United States for $1.5 billion, marking its first entry into shale gas production. The company has reached an agreement with pipeline operator Williams and GEP Haynesville II to acquire 100 percent of their interests in the South Mansfield gas field, located in western Louisiana’s Haynesville Shale basin.

The logo of JERA Co., Inc., the world's biggest LNG buyer, is displayed at the company office in Tokyo, Japan July 14, 2017.

GEP Haynesville II is a joint venture between GeoSouthern Energy, backed by Blackstone, and Williams. This acquisition expands JERA’s upstream capabilities and strengthens its control over gas supplies for its power generation operations.

Separately, Williams announced a $1.9 billion investment in Woodside Energy’s liquefied natural gas (LNG) production and export terminal, currently under construction in Louisiana. The facility is expected to boost LNG export capacity in the region, enhancing supply reliability for international buyers.

JERA, a joint venture of Tokyo Electric Power and Chubu Electric Power, has been actively increasing its exposure to the U.S. LNG market in 2025. Last month, the company signed a letter of intent to potentially secure supplies from Alaska’s $44 billion LNG export project, reflecting its strategy to diversify sourcing and strengthen energy security.

According to JERA, the investment in the South Mansfield gas field provides more direct control over upstream production, supporting the company’s broader strategy of ensuring reliable gas supply amid rising global energy demand. The company highlighted that Japan is preparing for an increase in electricity consumption from data centres, which are critical to the ongoing artificial intelligence technology boom.

This move into U.S. shale gas represents a significant step for JERA, as the company moves beyond LNG procurement into upstream gas production. By owning production assets, JERA aims to improve supply chain efficiency, mitigate price volatility, and better align its energy procurement with projected domestic power needs.

The Haynesville Shale basin is among the largest natural gas-producing regions in the United States, known for its high-output fields and extensive pipeline infrastructure. With JERA’s acquisition, the South Mansfield field will become a key component of the company’s strategy to secure stable gas supplies for power generation in Japan, particularly as energy demand from technology-intensive sectors grows.

This development underscores JERA’s broader strategy of international energy investment, balancing LNG imports with direct production exposure to ensure stable, cost-effective supply. The U.S. acquisition complements its other ongoing initiatives in LNG projects and highlights the company’s proactive approach to meeting Japan’s evolving electricity needs.

In summary, JERA’s $1.5 billion investment in the South Mansfield shale gas field, combined with its LNG market activities, positions the company to strengthen supply chain control, enhance energy security, and meet increasing power demand in Japan, particularly from AI-driven infrastructure.