ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Energy

Thai coal major Banpu buys US shale gas assets for $770m

Investor pressure drives shift away from carbon-heavy fuel

Cows graze in an oil production field in Midland, Texas. Banpu's shale acquisition in the U.S. state will more than triple its output of natural gas.   © Reuters

BANGKOK -- Thai coal company Banpu will purchase shale assets in the U.S. state of Texas for $770 million under a deal announced Wednesday, more than tripling its natural gas output amid growing investor pressure for cleaner fuels.

Banpu aims to complete the transaction for the Barnett Shale operations, now run by U.S.-based Devon Energy, in the second quarter of 2020.

The assets have been in operation for two decades and produce a net 600 million cu. feet of natural gas a day on average. Total reserves amount to 3.5 trillion cu. feet, according to the announcement.

The acquisition is in line with "Banpu's strategy of greener and smarter aspiration and our ambition to expand the company's footprint in U.S. shale gas," the Thai energy group said.

Investors and the public have grown increasingly critical of coal, owing to its high carbon footprint. Just this week, U.K. bank Standard Chartered said it would withdraw financing for three coal-fired power plants in Southeast Asia.

Banpu is working to reduce its dependence on the fuel. It took a stake in a U.S. shale project in 2016 and is involved in renewable energy development in Japan and China as well.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more