Japan's top power generator JERA is in advanced talks to buy natural gas production assets in the U.S. for around $1.7 billion, people familiar with the matter said, the latest example of the Asian nation investing in America's energy sector.
JERA emerged as the top bidder for the assets owned by GEP Haynesville II, a joint venture between Blackstone-backed (BX.N), opens new tab GeoSouthern Energy and pipeline operator Williams Companies (WMB.N), opens new tab, after banks solicited offers in recent weeks, the people said, asking not to be identified because the discussions are private.
The deal would mark JERA's first foray into shale gas production, and give one of the world's largest liquefied natural gas (LNG) buyers more control of its supply chain as Japan prepares for a surge in power demand from data centers critical to the artificial intelligence boom.
The Japanese firm topped other bidders, including multiple US-based energy companies, according to the sources, who cautioned that a deal is not guaranteed and GEP could still turn to other bidders, or scrap the sale altogether.
As a heavy importer of oil and gas due to its lack of domestic production, Japan has sought increased supplies from foreign allies since Russia's invasion of Ukraine disrupted energy markets.
