Tokyo Gas expects $90 million writedown on U.S. shale assets
The company, which last year took a ¥31 billion writedown on U.S. shale and Australia liquefied natural gas projects, plans to disclose any forecast revisions after they are compiled, according to a statement Friday. Tokyo Gas expects net income of ¥122 billion in the financial year ending March, according to an October statement.
The company acquired a 25 percent stake in a shale gas field in Texas' Barnett basin from Quicksilver Resources in 2013 for $485 million.
Horizontal drilling and hydraulic fracturing has unlocked a flood of natural gas in North America, pushing U.S. prices in December to the lowest since 1999. Oil this week fell to the cheapest in more than a decade. ■