According to an exclusive report by David French and Shariq Khan of Reuters, anonymous sources said that a unit of Tokyo Gas Co. Ltd. is in negotiations to buy U.S. natural gas producer, Rockcliff Energy from private equity firm, Quantum Energy Partners at price of about $4.6 billion, including debt.
The all-cash deal with Houston-based TG Natural Resources, which is 70% owned by the Japanese energy firm, is set to be announced this month, the sources continued, requesting anonymity as the discussions are confidential. Castleton Commodities International (CCI) owns the rest of TG Natural Resources.
TG Natural Resources is arranging funding from several financing sources to support the transaction, including banks and private credit providers, added the sources, who cautioned that no deal was guaranteed and the talks could end without an agreement.
Ever since Russia’s invasion of Ukraine, import-dependent Japanese entities have been under pressure to try to secure gas in jurisdictions they perceive as friendly.