MidOcean Energy to buy Tokyo Gas’ stakes in four LNG projects in Australia for $2.15bn

EIG-managed liquefied natural gas (LNG) company MidOcean Energy has signed an agreement with Tokyo Gas to acquire stakes of the latter in four integrated LNG projects in Australia for $2.15 billion in cash.

The transaction includes the acquisition of Tokyo Gas’ interests in the Gorgon LNG project, the Ichthys LNG project, the Pluto LNG project, and the Queensland Curtis LNG project.

The four LNG projects in Australia, which are located on the western and eastern seaboard of the country, mainly supply their LNG output to Asia.

Chevron, INPEX, Woodside, and Shell are the operators of the LNG projects in Australia.

Blair Thomas — EIG Chairman and CEO said: “The launch of MidOcean reflects our deep belief in LNG as a critical enabler of the energy transition and the growing importance of LNG as a geopolitically strategic energy resource. We believe this transaction provides MidOcean with a foundational portfolio of cost-advantaged integrated LNG assets in a low-risk jurisdiction, ideally positioned to supply key customers in Japan, Asia and across the globe for decades to come.”

The acquisition is part of MidOcean Energy’s strategy to develop a high-quality, diversified, global ‘pure play’ integrated LNG company. It is expected to generate nearly one million tonnes per annum of LNG net to MidOcean Energy.

Subject to customary closing conditions, including the receipt of Australian regulatory approvals, the acquisition of stakes in the four LNG projects in Australia is expected to be completed in the first half of 2023.

Barrenjoey, Barclays, and JP Morgan served as financial advisors to EIG on the transaction, while White & Case acted as its legal advisor.

De la Rey Venter — MidOcean Energy CEO said: “With today’s announcement, MidOcean is taking the first step toward realizing its vision to build a material pure play LNG business that we expect will support the world’s transition to a Net Zero future.

“We see a number of opportunities to further expand MidOcean’s position in supplying LNG markets around the world and look forward to working with our new partners and customers.”