The booming U.S. liquefied natural gas (LNG) industry

ExxonMobil and Chevron have already become two of the world’s largest natural gas and liquefied natural gas (LNG) producers. Yet, as the head of a Swiss natural gas producer and trader told the Financial Times: “If you operate in just one segment, you’ll enjoy two or three good years, then suffer a bad one.” Benjamin Lakatos, Chairman of MET Group, added: “To succeed in LNG, you need to be everywhere.” The red-hot LNG sector is challenging expectations for the energy transition. In recent years, the much-touted energy transition—while delivering notable achievements—has increasingly come under pressure and scrutiny, especially under the second Trump administration in the United States. Shell, BP, TotalEnergies, ExxonMobil, and Chevron are rapidly expanding their LNG capacity, betting on long-term demand. Although wind and solar power generation has reached record highs, data show that European emissions continue to rise as coal and natural gas fill supply gaps. Critics warn that rising LNG consumption could undermine climate goals; yet industry experts—and the momentum itself—suggest that energy transition targets may need to be reassessed in light of real-world demand trends. The energy transition was supposed to suppress demand for oil, natural gas, and coal. The more electricity generated by wind and solar, the less demand there should be for hydrocarbons. Instead, demand for all three continues to grow—especially for natural gas. As a result, major oil companies are doubling down on this core business, much to the frustration of transition advocates. Sam Meredith of CNBC noted in an article that the latest quarterly reports from several oil majors all underscore the strategic importance of LNG—indeed, LNG has become a focal point for today’s AI-era supergiants. Analysts say the AI era will drive a global surge in electricity demand—one that wind and solar alone cannot meet. Shell announced two months ago that it will add 12 million tonnes of LNG capacity by 2030. TotalEnergies is advancing its own LNG projects and engaging in LNG trading with other producers, aiming to increase the volume of LNG it manages by 50% by 2030. BP has launched a new offshore LNG project off Senegal and Mauritania. ExxonMobil and Chevron are no less ambitious: ExxonMobil plans to expand its LNG assets by 50% by 2030, while Chevron intends to further scale up its global LNG operations. According to Meredith, this may be a risky bet—especially against forecasts predicting that natural gas demand will peak before 2030. These forecasts originate not only from the International Energy Agency (IEA), a strong proponent of the energy transition, but also from other like-minded institutions—including climate-focused think tanks and wind and solar industry associations. Yet it is precisely the IEA that, in a recent report, stated that natural gas demand—especially for LNG—is expected to keep growing.

Spending $5.2 billion! A Japanese company enters the heartland of U.S. shale gas

Mitsubishi Corporation—one of Japan’s largest integrated trading companies—announced it will acquire natural gas assets owned by U.S.-based Aethon Energy Management in the Haynesville shale region for $5.2 billion, marking its first direct, full-chain entry into the U.S. shale gas sector. The deal was announced on January 16, 2026. Mitsubishi Corporation will acquire all equity stakes in Aethon III LLC, Aethon Joint Venture LP, and related entities from Aethon Energy Management and its existing shareholders. Upon completion, Mitsubishi Corporation will gain natural gas assets producing approximately 2.1 billion cubic feet per day—equivalent to roughly 15 million tonnes of LNG annually. Mitsubishi Corporation joins the ranks of core players in the U.S. shale gas industry. According to official disclosures by Mitsubishi Corporation, the transaction is expected to close in the first quarter of fiscal year 2026 in Japan, subject to customary regulatory approvals. Notably, including approximately $2.3 billion in assumed debt, the total value of this transaction will reach $7.5 billion—setting a new record for Mitsubishi Corporation’s largest acquisition to date. The core assets acquired are concentrated in the Haynesville shale region of Louisiana and Texas—a hub widely regarded as the epicenter of the U.S. shale gas market. Current data indicate that these assets produce about 2.1 billion cubic feet of natural gas per day, equivalent to roughly 15 million tonnes of LNG annually. Mitsubishi Corporation plans to boost daily production to 2.6 billion cubic feet through subsequent development—approximately one-quarter of Japan’s total annual natural gas imports. Geographically, the Haynesville production area lies adjacent to the U.S. Gulf Coast, granting direct access to major LNG export infrastructure—providing a natural logistical advantage for processing and exporting natural gas. Mitsubishi Corporation explicitly stated that the acquired assets will form deep synergies with its existing North American energy platform. From a business-planning perspective, natural gas produced from the newly acquired assets is currently sold primarily to markets in the southern United States. Mitsubishi Corporation is now evaluating options to export part of this output as LNG to Asia—including Japan—and Europe. Financially, Mitsubishi Corporation expects this shale gas business to generate net income of ¥70–80 billion in fiscal year 2027. This transaction fully aligns with Mitsubishi Corporation’s “Corporate Strategy 2027,” which prioritizes building an integrated energy value chain—and will support its growth in downstream sectors across the United States, including power generation, data centers, and chemicals. Beyond Mitsubishi: Japanese firms’ broader push into the U.S. oil and gas sector In recent years, Japanese energy enterprises have collectively adopted a heavy investment stance toward the U.S. oil and gas market—spanning integrated trading houses, electric power giants, and specialized exploration firms—through diverse approaches such as asset acquisitions, long-term procurement agreements, and joint development ventures. As one of Japan’s largest electric utilities, JERA has pursued an especially aggressive strategy in the North American oil and gas market. In June 2025, JERA formally announced a 20-year long-term agreement to procure up to 5.5 million tonnes of LNG annually from four U.S. suppliers—with sourcing concentrated in Texas and Louisiana—areas highly overlapping with those where Mitsubishi Corporation acquired its assets.

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