EIG-backed MidOcean Energy has signed definitive agreements with JERA to acquire an additional 0.417% interest in the Gorgon LNG project offshore Western Australia (WA).
This purchase increases MidOcean's stake in the Chevron-operated liquefied natural gas (LNG) project and expands its portfolio of valuable assets. As part of this, MidOcean will acquire JERA Gorgon, which presently holds JERA’s stake in the LNG asset.
The Gorgon LNG project sources its gas from the Gorgon and Jansz-Io fields in the Carnarvon Basin off the coast of WA.
It features three LNG trains with a combined production capacity of around 15.6 million tonnes per annum (mtpa).
The project also provides domestic gas supply and condensate production via substantial offshore and onshore infrastructure on Barrow Island.
The deal increases MidOcean's interest in the Gorgon project to 1.417%, adding to its existing involvement.
JERA's 0.735% stake in the Ichthys LNG project is also part of the transaction.
The completion of this transaction depends on meeting certain conditions and receiving regulatory approvals, with a target completion date in the first half of 2026.
Once the necessary conditions are met, the stakes in both the Gorgon and Ichthys projects will be sold to MidOcean.
Following this, and contingent upon additional conditions being fulfilled, the interest in Ichthys will be transferred to a current joint venture partner in the LNG project.
JERA senior managing executive officer and chief low-carbon fuel officer Ryosuke Tsugaru said: “Australia remains strategically important to JERA as a trusted and reliable LNG supplier, and we value the long-standing partnerships we have built there.
“Through our ongoing portfolio optimisation, we are strengthening our ability to support long-term energy security for Australia, Japan and the broader region. JERA looks forward to collaborating with MidOcean Energy across the LNG value chain.”
In conjunction with this transaction, MidOcean and JERA are exploring further collaborations across global energy sectors, with the goal of establishing a strategic alliance.
Both parties are committed to disciplined growth and leveraging additional value sources within the LNG sector.
MidOcean CEO De la Rey Venter said: “The acquisition adds incremental uncontracted equity volumes, increasing our ability to optimise across our portfolio and capture value through commodity cycles.
“Gorgon is a high-quality, cash-generative asset with long reserve life and strong operating performance. Deepening our relationship with JERA also strengthens our ability to originate and execute future transactions in the global LNG market.”
UBS provided financial advice to MidOcean, while legal guidance was rendered by White & Case during the transaction.
In October 2024, MidOcean acquired an additional 15% interest in Peru LNG in South America from US-based Hunt Oil Company, bringing its total interest to 35%.
