EIG’s MidOcean completes acquisition of LNG Canada stake from Petronas

EIG and MidOcean announced the completion of the deal in a statement on Wendesday.

The transaction includes a 20 percent interest in the North Montney upstream joint venture (NMJV), which holds Petronas’ upstream investment in Canada, and a 20 percent interest in the North Montney LNG partnership (NMLLP), which holds Petronas’ 25 percent participating interest in the LNG Canada project.

“This strategic investment positions MidOcean across the LNG value chain, securing upstream resources and downstream liquefaction through the LNG Canada project, with around 0.7 mtpa of associated LNG and potential to grow further,” the statement said.

LNG Canada is Canada’s first LNG export project, and it shipped its first LNG cargo earlier this year.

A joint venture of US engineer Fluor and Japan’s JGC recently handed over the second train of the LNG Canada project, marking the completion of the first phase of the project in Kitimat, British Columbia.

With a proposed Phase 2 expansion, Shell and its partners plan to double the terminal’s capacity to 28 mtpa.

At 40 percent, Shell has the largest working interest in the LNG Canada JV.

Besides Petronas and now MidOocean, other partners include PetroChina, Mitsubishi Corporation, and Kogas.

MidOcean continues to invest in LNG

MidOcean was established to build a diversified global LNG portfolio, with interests in Gorgon LNG, Pluto LNG, QCLNG, and Peru LNG.

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

MidOcean also completed a deal to buy an additional 15 percent interest in Peru LNG from Hunt Oil. MidOcean’s interest in Peru LNG now stands at 35 percent,

In addition, EIG announced in September 2024 that energy behemoth Saudi Aramco will increase its stake in MidOcean and help the latter boost its stake in Peru LNG.

In September 2023, Aramco agreed to buy a minority stake in MidOcean Energy for $500 million.

EIG said Aramco will increase its interest in MidOcean to 49 percent.

In addition to EIG and Aramco, Japan’s Mitsubishi Corporation invested in MidOcean, among other blue-chip investors.

Earlier this year, MidOcean signed a heads of agreement with Energy Transfer to jointly develop the latter’s Lake Charles LNG export facility in Louisiana.

Under the HoA, MidOcean would commit to fund 30 percent of the construction costs and be entitled to receive 30 percent of the LNG production, about 5 million tonnes per annum, from Lake Charles LNG.