EIG’s MidOcean to buy Gorgon and Ichthys stakes from Jera

Jera announced on Thursday that its subsidiary Jera Australia entered into the agreement with MidOcean.

The Japanese power firm and LNG trader said the transaction remains subject to the satisfaction of relevant conditions precedent, while the transfers of both projects are subject to government approvals and the satisfaction of contractual conditions with certain project partners.

Jera holds a 0.417 percent interest in the Chevron-operated 15.6 mtpa Gorgon LNG project and a 0.735 percent interest in the Inpex-operated 8.9 mtpa Ichthys LNG project.

The company did not reveal the pricing details.

Jera noted that it will maintain a “strong” presence in key Australian LNG projects and, as part of its responsibility to help ensure Japan’s ongoing energy security, will continue to procure LNG from both the Gorgon and Ichthys LNG projects following completion of the corporate transactions.

It has a contract with the Icthhys JV for 1.54 million tons of LNG per year over 15 years, and a contract with the Gorgon JV for 1.44 million tons of LNG per year for a 25-year period.

MidOcean boosting LNG portfolio

MidOcean announced in a separate statement that it had entered into definitive agreements with Jera to acquire Jera’s interest in the Gorgon LNG and Ichthys LNG projects.

Moreover, MidOcean is an existing participant in the Gorgon LNG project, which recently shipped its 2,000th cargo, and this transaction increases MidOcean’s interest in Gorgon to 1.417 percent.

Last year, MidOcean completed its acquisition of Tokyo Gas Co.’s interests in a portfolio of Australian integrated LNG projects.

These include Gorgon LNG, Woodside’s Pluto LNG, and Shell’s Queensland Curtis LNG projects.

Subject to the satisfaction of relevant conditions precedent, the interests in Gorgon and Ichthys will be sold to MidOcean, and then the Ichthys interest shall be transferred, subject to the satisfaction of further conditions, to an existing joint venture participant in the Ichthys LNG project, MidOcean said.

In parallel, MidOcean and Jera plan future collaborations, exploring future transactions and opportunities on LNG and adjacent energy transactions globally with the aim of creating a strategic alliance, the company said.

This reflects a shared objective to “pursue disciplined growth and unlock additional sources of value across the LNG value chain.”

The parties aim to close the transaction during the first half of 2026.

“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,” De la Rey Venter, MidOcean’s CEO, said.

Saudi Arabia’s energy behemoth Aramco has a 49 percent stake in MidOcean.

In 2024, MidOcean completed its deal to buy an additional 15 percent interest in Peru LNG from Hunt Oil, while it also purchased a 20 percent interest in Petronas’ entities in Canada, including a stake in the Shell-led LNG Canada project, in 2025.