Japan Bank for International Cooperation (JBIC), a government-backed financial institution, will provide a 380 billion yen ($2.5 billion) loan to support Mitsubishi Corporation's acquisition of U.S. natural gas developer Aethon Energy Management, Nikkei reported Friday.
The financing will be conducted jointly with private financial institutions including MUFG Bank, Japan's largest banking group. This marks another major public-private collaborative investment following Nippon Steel's bid for U.S. Steel. Mitsubishi Corporation has been pursuing the Aethon acquisition since June last year and plans to complete the deal for 1.2 trillion yen ($7.9 billion).
JBIC's involvement in the financing reflects Japan's policy objective of strengthening energy security. "The strategy aims to enhance the competitiveness of Japanese companies in the U.S. natural gas supply business and secure a stable energy procurement base," Nikkei said. "The need for energy supply chain diversification has grown particularly urgent as Middle East instability intensifies."
The report noted that more than 90% of Japan's crude oil imports pass through the Strait of Hormuz, leaving the country vulnerable to geopolitical risks. While liquefied natural gas accounts for a relatively smaller share, the need to diversify energy procurement sources is increasingly emphasized.
Aethon operates active drilling operations in the Haynesville natural gas basin spanning eastern Texas and northern Louisiana. The company is considered a strategically valuable asset due to its proximity to LNG export terminals along the Gulf of Mexico coast.
Aethon's annual LNG production capacity stands at 15 million tons, equivalent to approximately one-quarter of Japan's annual demand. The gas produced is primarily consumed domestically in the United States, with some planned for export to Japan and other Asian and European markets.
Japan relies on imports for most of its natural gas consumption, traditionally secured through long-term contracts. However, according to the Institute of Energy Economics, Japan, contracted volumes are projected to decline from approximately 55 million tons in 2025 to about 41 million tons by 2035. With production decreases expected from Australia, a major supplier, securing U.S. gas—where supply expansion is anticipated—has emerged as a critical challenge.
