Commodities trader Gunvor invests in a venture to purchase US natural gas production

Commodities trader Gunvor announced on Wednesday that it had provided financial support?to an executive team from the energy industry for their efforts to accumulate natural gas-producing assets in?top U.S. Shale basins. Gunvor confirmed through a spokesperson that it has backed Western Natural Resources. This is a private oil-and-gas producer based in Oklahoma City, which previously worked with asset manager KKR to develop energy production projects. Gunvor is increasing its exposure to U.S. Natural Gas production by backing Western. The company believes that this will have a long-term positive impact on the portfolio of the commodity trader. The demand for fossil fuels is expected to increase exponentially, as data centers that power the artificial intelligence revolution and industrial electrification intensify. The demand for U.S. natural gas has increased as the Iran War forces importers of natural gas to rethink supplier mixes.

Gunvor's spokesperson stated that the U.S. was a great place to invest right now. Gunvor spokesperson: "This deal builds on Gunvor's current investments in the U.S. Energy sector and will contribute to the growth of domestic energy supply." Gunvor first announced in November that it was actively in talks with newly formed private companies to buy?U.S. Gunvor is in active talks to support newly formed private companies in buying?U.S. natural gas assets for its own benefit. Gunvor had previously announced its entry into U.S. Upstream Gas Production in its Annual Results for 2024.

The Gunvor spokesperson refused to provide further details about the tie-up. However, four sources who are familiar with the situation said that Gunvor has already started investing in assets via the Western venture. Gunvor provided $300 million in capital last month to Western for the acquisition of natural gas-producing assets located in the Haynesville Shale Basin of Texas and Louisiana. Two of the sources said this. Sources said that the assets were purchased from Nadel and Gussman NV and Quantent Energy Partners - both portfolio companies of Post Oak Capital. Post Oak announced its sale on May 27. It was one of four exits that the energy-focused fund manager had agreed to in the past month. However, neither the buyer nor Gunvor's role were previously disclosed. Sources requested anonymity in order to discuss confidential information. Post Oak declined comment. Gunvor will continue backing Western in future acquisitions?to build up a portfolio of U.S. gas producing assets. These four sources confirmed this. Western is "in active discussions" for deals like this in Haynesville, and other top U.S. Shale Basins connected to export facilities, according to four sources. Western hopes to take advantage of a wave of asset sale?by firms selling off excess acreage, and by companies that are selling their long-held investments.

Gunvor's exact investment in Western or future plans could not be determined immediately.

Gunvor's spokesperson stated that the company is looking forward to making further investments in U.S. gas and power, both directly and through partners. (Reporting and editing by David Gregorio in New York, Shariq French and David French from New York)

(source: Reuters)