Mitsubishi to foray into US shale gas upstream sector with $5.2bn deal
Mitsubishi is set to enter the US shale gas upstream sector through the acquisition of Aethon III, Aethon United and associated entities (collectively “Aethon”), valued at approximately $5.2bn (Y822bn).
The Japan-based group has reached an agreement with Aethon Energy Management and Aethon stakeholders such as the Ontario Teachers’ Pension Plan and RedBird Capital Partners.
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The deal follows market speculation in mid-2025 about Mitsubishi’s interest in Aethon.
Through the acquisition, Mitsubishi aims to expand its US shale gas business across the value chain, adding upstream ownership alongside domestic sales and export of produced gas.
Mitsubishi’s North American energy portfolio already includes partnerships in Canadian shale gas with Ovintiv, midstream operations via CIMA Energy in Houston, liquefied natural gas (LNG) exports through LNG Canada and Cameron LNG, and power generation via Diamond Generating.
By acquiring Aethon’s assets in the Haynesville Shale, a major natural gas-producing region in Texas and Louisiana, Mitsubishi intends to enhance its integrated energy operations.
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By GlobalDataThese assets currently yield approximately 2.1 billion cubic feet per day (bcf/d) of natural gas.
Haynesville serves as a critical source of natural gas for the southern US market and offers access to multiple LNG export facilities including Cameron LNG, where Mitsubishi holds liquefaction capacity rights under a tolling agreement.
A segment of Aethon’s natural gas output is under consideration for export as LNG to markets in Asia and Europe.
The acquisition aligns with Mitsubishi’s ‘Corporate Strategy 2027, Leveraging Our Integrated Strength for the Future’, which focuses on leveraging integrated strengths across its business units.
This strategy aims to expand Mitsubishi’s earnings base in natural gas and LNG while developing a comprehensive value chain that stretches from upstream gas development to power generation and other sectors.
Subject to receipt of regulatory approvals, the deal is expected to be finalised in the first quarter of Japan’s 2026 fiscal year.
In conjunction with this acquisition, Mitsubishi has forged a global alliance with Aethon Energy Management.
This alliance will explore commercial opportunities globally in areas such as LNG, carbon capture and storage, geothermal energy, low-carbon solutions and digital infrastructure development.
It is non-binding and non-exclusive, allowing both parties to independently pursue strategic projects outside of the collaboration.
Under the terms of the alliance, Mitsubishi intends to leverage its global relationships with capital providers to aid Aethon Energy Management in evaluating potential financing options for qualifying projects.
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