Japanese shipping operator Nippon Yusen Kabushiki Kaisha (NYK) has announced plans to participate in an investment in MidOcean Energy, an EIG-backed liquefied natural gas (LNG) company based in the UK.
NYK’s planned involvement will take place through a share subscription in Diamond Gas MidOcean (DGMO), a special purpose vehicle (SPV) established by Mitsubishi in 2023 to hold a stake in MidOcean Energy.
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The transaction will see NYK subscribing nearly 211.9 million shares issued in DGMO’s third-party allotment, to jointly own DGMO with Mitsubishi. NYK’s investment will amount to $221m (Y35.37bn), with a voting stake of 87.4% in DGMO.
Completion of the investment is subject to competition law and other regulatory approvals from relevant authorities.
The companies expect to finalise the share subscription between August and September 2026.
NYK described the planned investment as part of its ongoing expansion in the LNG value chain.
The company has previously invested in the Wheatstone LNG Project in Western Australia, which began commercial operations in 2017 with a production capacity of up to 8.9 million tonnes per annum (mtpa).
NYK’s involvement in the project is alongside JERA, Mitsubishi and the Japan Organization for Metals and Energy Security.
It also holds a stake in the Cameron LNG Project in Louisiana, US, which started operations in 2019 and has a production capacity of 12mtpa. NYK is involved in the project via a joint venture arrangement with Mitsubishi.
In addition to the planned investment, NYK intends to establish a strategic partnership with MidOcean Energy focused on LNG marine transportation.
Earlier this month, Sheikh Mohammed bin Khalid Al Nahyan’s Private Department announced an investment of $1.13bn (Dh4.14bn) in MidOcean Energy.
In addition to the funding, the Private Department and EIG signed a strategic partnership focused on pooling capital, identifying investment opportunities and building institutional investment platforms in the United Arab Emirates and other regional markets.
