Tokyo Gas has signed a memorandum of understanding with Shizuoka Gas to transfer its interest in the Eagle Ford shale gas project in southern Texas, US, for $130m (Y19.43bn).

Tokyo Gas holds its Eagle Ford assets through TG Eagle Ford Resources (TGER), an investment arm of Tokyo Gas Americas.

The project is a collaboration between three companies, with Lewis Energy Group serving as the operator, and TGER and BP Energy holding non-operating stakes.

It encompasses the Eagle Ford formation along with additional regions in Webb and La Salle counties, Texas.

Shizuoka Gas will acquire TGER's entire 25% stake in the project, marking its first venture in North America and its entry into the upstream natural gas sector.

Tokyo Gas entered the project in June 2016 by acquiring Eagle Ford and other interests from Vertex Corporation, constituting its second shale gas development initiative in the US.

Over the past eight years, the project has played a key role in expanding Tokyo Gas' overseas business, the Japanese company said.

This move will allow Tokyo Gas to concentrate on the operations of TGER, which holds assets in east Texas and north Louisiana.

Meanwhile, Shizuoka Gas plans to set up a local subsidiary this year.

The local subsidiary's shale gas production is set to average approximately 400,000 tonnes per year of liquefied natural gas equivalent over 20 years.

The gas will be sold in the US, with potential for further business expansion there.

Shizuoka Gas said: "Starting with this project, we will consider further business development in the United States."

In June 2023, Tokyo Gas expanded its presence in the US natural gas market by acquiring Texas-based shale gas producer Rockcliff Energy and a stake in a North American energy marketing and trading company.