EIG’s MidOcean wraps up purchase of Tokyo Gas’ interests in Australian LNG projects

MidOcean Energy, the LNG unit of US-based energy investor EIG, has completed its previously announced deal to buy interests in a portfolio of Australian integrated LNG projects from Japan’s Tokyo Gas.

The acquisition includes Tokyo Gas’ interests in Chevron’s Gorgon LNG, Woodside’s Pluto LNG, and Shell’s Queensland Curtis LNG projects, EIG said in a statement on Thursday.

EIG said the portfolio benefits from experienced operators, including Chevron, Woodside and Shell, and spans the LNG value chain from upstream operations to midstream, liquefaction, and sales.

As part of the transaction, MidOcean will open an office in Perth, Australia, to support and oversee the projects, it said.

Back in 2022, MidOcean Energy entered into a definitive agreement with Tokyo Gas to buy the latter’s interests in a portfolio of four Australian integrated LNG projects for $2.15 billion.

The portfolio was expected to generate about one million tonnes per annum of LNG net to MidOcean.

Besides these three projects, the deal also included a 1.575 percent stake held by Tokyo Gas in the Ichthys LNG project through Tokyo Gas Australian project subsidiaries.

However, Ichthys LNG operator Inpex said in January this year it had decided to exercise its preemptive rights to acquire Tokyo Gas’s participating interest in the project.

Although the contract amount remains unchanged from the previously announced $2.15 billion, there “may be a difference between the realized transfer amount and the contract amount, depending on the terms of the contract,” Tokyo Gas said in a separate statement on Thursday.

De la Rey Venter, MidOcean’s CEO said the acquisition of these “high quality, cash flowing LNG projects is a significant milestone in MidOcean’s strategy to build a diversified, global ‘pure play’ integrated LNG company that supports the world’s transition to a low-carbon future.”

“This transaction accelerates our ambition to be a leading player in the global LNG sector for decades to come, and we look forward to servicing key LNG customers in Japan, Asia and across the globe,” he said.

MidOcean is working to significantly expand its business and last year energy behemoth Saudi Aramco agreed to buy a minority stake in the firm.

Besides this move, MidOcean recently purchased a stake in LNG terminal operator Peru LNG from a unit of South Korean conglomerate SK.

SK Earthon, a unit of SK Innovation, agreed to sell its 20 percent share in Peru LNG to MidOcean for about $256.5 million.

- Advertisements -

Most Popular

BP expects LNG demand to grow up to 40 percent by 2030

UK-based energy giant BP expects global demand for liquefied natural gas (LNG) to rise up to 40 percent by...

Venture Global’s Plaquemines LNG gets OK to introduce gas to GTG

US LNG exporter Venture Global LNG has received approval from US energy regulators to introduce natural gas to the...

Honeywell to buy Air Products’ LNG business for $1.81 billion

US conglomerate Honeywell has agreed to acquire Air Products’ liquefied natural gas (LNG) process technology and equipment business for...

More News Like This

Gladstone LNG exports almost flat in June

Liquefied natural gas (LNG) exports from the Gladstone port in Australia’s Queensland were almost flat in June compared to...

Peru LNG boosts truck loading capacity

LNG terminal operator Peru LNG has increased the truck loading capacity at its 4.4 mtpa liquefaction and export plant...

Gladstone LNG exports down in May

Liquefied natural gas (LNG) exports from the Gladstone port in Australia’s Queensland decreased 1.7 percent year-on-year in May despite...

Peru LNG exports remain steady in May

Liquefied natural gas exports from Peru remained steady in May, with five cargoes leaving Peru LNG’s liquefaction plant at...