Sumitomo, a Japanese trading firm, is looking to expand its services and related business in the U.S. shale patch, three years after exiting shale production operations. According to an interview with Bloomberg, Sumitomo president Shingo Ueno revealed that the company aims to increase sales of pipelines used in U.S. shale fields while leveraging its strengths in related businesses. Despite selling its production assets, Sumitomo sees shale as essential for the U.S. and plans to capitalize on this resource through strategic expansion.
In contrast to other Japanese firms acquiring U.S. shale assets amid consolidation in the American oil and gas industry, Sumitomo’s strategic shift highlights its focus on non-production activities within the shale sector. For example, Tokyo Gas is expanding its upstream business in the U.S., with plans to grow its shale gas business in Texas and Louisiana through 2025. Mitsui & Co.’s recent acquisition of an unconventional gas asset named Tatonka in Texas from U.S. oil and gas companies provides access to the Gulf Coast industrial area and LNG export terminals and ammonia plants.
Overall, Japanese trading firms like Sumitomo, Tokyo Gas, and Mitsui & Co., are strategically positioning themselves to grow and capitalize on opportunities within the U.S