MidOcean Energy, a portfolio company of private equity investor EIG, has agreed to acquire stakes in four integrated liquefied natural gas (LNG) projects in Australia from Japan’s Tokyo Gas in an all-cash deal worth approximately $2.15bn.
Under the agreement, MidOcean will acquire Tokyo Gas’ stakes in the Gorgon, Ichthys, Pluto, and Queensland Curtis LNG projects.
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Spread over the western and eastern seaboard of Australia, the four LNG projects are claimed to be major suppliers to Asian countries, with a set of long-dated take or pay contracts with investment grade counterparties.
EIG expects the portfolio to generate nearly one million tonnes per annum of LNG net for MidOcean Energy.
EIG chairman and CEO R Blair Thomas 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.
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“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.”
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By GlobalDataThe portfolio of LNG projects benefits from experienced operators such as Woodside, Chevron, Inpex, and Shell.
The portfolio also spans the LNG value chain, starting from upstream operations to midstream, liquefaction, and sales.
The deal forms part of MidOcean’s strategy to create a diversified, global ‘pure play’ integrated LNG player.
MidOcean Energy CEO De la Rey Venter said: “With today’s announcement, MidOcean is taking the first step toward realising 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.”
For Tokyo Gas, the sale is part of its strategy to review its asset portfolio to allocate funds to growth areas.
Subject to Australian regulatory approvals and other customary closing conditions, the deal is planned to close in H1 2023.
