POSCO International’s U.S. subsidiary E&P USA has signed a definitive agreement to acquire a 100% stake in non-operated Marcellus basin shale gas assets held by a subsidiary of U.S.-based Chord Energy. The news followed the contract signing on September 14 and was disclosed at a business briefing on September 16.
The assets being acquired are non-operated shale gas properties in the Marcellus basin located in Pennsylvania, comprising a total of 2,006 gas wells, made up of 1,305 producing wells and 701 development wells. POSCO International will participate in this asset as an equity investor rather than as the operator.
The acquisition price is reported at approximately $550 million (about KRW 750 billion). Average daily production in the first half of the year was approximately 124 million cubic feet, equivalent to roughly 1 million tonnes of LNG per year, or about 25% of the production volume from POSCO International’s existing Myanmar gas fields. The deal is targeted to close in mid-November 2026, and the company expects annual operating profit of around KRW 100 billion from 2028 onward.
POSCO International is pursuing a strategy to diversify its oil and gas portfolio by adding U.S. shale gas assets alongside its Myanmar gas fields, and this acquisition is interpreted as an approach to diversify risk by investing in a non-operated asset that generates stable cash flow.
While Korean companies have previously invested in U.S. shale gas assets, this strategy of investing in a stable producing asset through a non-operated equity stake offers the advantage of securing stable dividends and cash flow without bearing direct development and operating risk. Eastern U.S. shale gas fields such as the Marcellus and Utica have recently seen their asset values re-rated amid rising gas demand driven by data centers, which is likely to sustain interest from domestic and international institutional investors and energy companies. For POSCO International, the deal is also expected to reduce dependence on its Myanmar gas fields and build a geographically diversified gas portfolio, lowering exposure to region-specific risk.
A primary point to watch is whether the deal closing scheduled for mid-November proceeds as planned. Whether actual production and operating profit after the acquisition align with the company’s expectations (approximately KRW 100 billion annually from 2028 onward) is also of interest. In addition, whether POSCO International will further expand its U.S. shale gas asset investments going forward, and whether it has plans to link gas from this asset to LNG trading or domestic supply, need to be confirmed.
Korean companies have reportedly continued to expand equity investments in overseas gas fields to strengthen energy supply chain stability, and this acquisition is reported to be a continuation of that trend.
This acquisition is seen as significant in that a Korean company is directly holding US shale gas assets, securing an upstream position in its LNG value chain. Korean energy companies’ overseas gas field investments have reportedly mostly taken the form of equity stakes or long-term offtake agreements, and acquiring the asset itself—even a non-operated one—is seen as distinct in that it can secure both feedstock supply stability and pricing leverage simultaneously. The US shale gas market has reportedly seen active asset sales and acquisitions recently, with growing participation from Asian energy companies, and this transaction is cited as representative of that trend.
Whether the transaction closes as targeted in mid-November, and the subsequent actual production and supply plans, are the first items to confirm. Also worth watching is whether POSCO International pursues additional overseas gas field asset acquisitions following this deal, and how volumes produced from the acquired assets are actually linked to Korea’s domestic LNG supply chain.