Key facts
- Gunvor is in talks to acquire natural gas-producing assets from Silver Hill Energy Partners.
- The potential deal is valued between $1.2 billion and $1.5 billion.
- Western Natural will operate the assets if the acquisition is successful.
- Silver Hill owns about 58,000 net acres in the Haynesville shale basin.
- The Haynesville basin is a key area for U.S. liquefied natural gas exports.
Commodities trader Gunvor is reportedly in discussions to acquire U.S. natural gas-producing assets from private energy firm Silver Hill Energy Partners, a move that would significantly expand its shale gas production and marketing capabilities. The potential deal, valued between $1.2 billion and $1.5 billion, focuses on assets within the Haynesville shale basin across Texas and Louisiana.
If successful, Western Natural, an oil and gas producer financially backed by Gunvor earlier this year, is expected to operate the acquired assets. This potential acquisition marks Gunvor's second significant move in the Haynesville basin this year, following its capital support for Western Natural's approximately $300 million purchase of Haynesville gas-producing assets in June.
Silver Hill Energy Partners holds around 58,000 net acres in the region, with an estimated net production of about 370 million cubic feet equivalent per day. The Haynesville basin has garnered substantial investor interest due to its high production levels and strategic proximity to existing and planned liquefied natural gas (LNG) export terminals along the U.S. Gulf Coast. The ongoing geopolitical tensions, particularly the Iran war's impact on Middle Eastern supplies and shipping routes like the Strait of Hormuz, have further amplified interest in U.S. natural gas exports.
Gunvor's strategic expansion into U.S. natural gas aligns with a broader trend among commodities traders, including Vitol and Citadel, to invest in upstream and downstream assets. This pivot is seen as a way to gain greater flexibility in their core trading operations, driven by increased demand from power generation for AI data centers and new export terminals. The company has also secured its second long-term LNG offtake deal with Delfin Midstream this year.