Tokyo Gas Announced Plans to Enhance Capital Efficiency

SEATTLE (Oil Monster): Leading Japanese gas provider Tokyo Gas announced plans to boost its capital efficiency through potential sale of underperforming assets, including real estate. It should be remembered that U.S.-based Elliott Management had recently made investment in the company.

Shinichi Sasayama, President, Tokyo Gas, while speaking at a news conference, said that the company is looking to enhance its capital efficiency through various ways including reviewing and offloading assets of lower efficiency. All assets, including real estate, will be reviewed and better utilized, he added. In the meantime, Sasayama declined to comment on further details of the company’s recent association with Elliott Management.

Elliott had hinted at Tokyo Gas’ chances of improving capital efficiency by divesting a few assets from the company’s extensive real estate portfolio that are non-core to its main energy business.

Sasayama commented that the company may consider investing in U.S. gas assets, provided they contribute to the company’s profits. However, he declined to comment on reports that the company is in talks with Woodside Energy over acquisition of a stake in the gigantic Louisiana LNG export project.