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According to a joint statement, 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.
The HOA also provides that MidOcean will have the option to arrange for gas supply for its share of LNG production and that MidOcean will commit to long-term gas transportation on Energy Transfer pipelines.
“The obligations of Energy Transfer LNG and MidOcean under the HOA will be subject to both parties’ determination to take a positive final investment decision (FID) as well as the satisfaction of other conditions precedent,” the statement said.
The partners did not provide the financial details of the transaction.
Tom Mason, president of Energy Transfer LNG said the company believes MidOcean’s participation will provide a “significant catalyst” towards reaching positive FID,
“MidOcean’s management team brings a wealth of LNG experience to the project. In addition, Energy Transfer and EIG already have an established relationship that will only be strengthened through this transaction,” he said.
MidOcean expanding LNG portfolio
De la Rey Venter, CEO of MidOcean, said this agreement has the potential to “transform MidOcean’s portfolio, providing a material volume of advantaged Atlantic Basin supply.”
“This complements our current assets, which are all located in the Asia-Pacific Basin. Geographical diversity is a key enabler for value delivery from an LNG portfolio. MidOcean considers Lake Charles LNG to be one of the most advantaged US LNG projects under development,” he said.
Last year, MidOcean 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,
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 now 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.
MidOcean is heavily investing in LNG.
In addition to these deals, last year, the company completed its acquisition of Tokyo Gas Co.’s interests in a portfolio of Australian integrated LNG projects.
Lake Charles LNG
In February this year, Energy Transfer executives said they hope to make FID to build the Lake Charles LNG export facility in the fourth quarter of 2025.
Energy Transfer’s Lake Charles LNG project seeks to convert its existing regasification terminal to an LNG export facility.
It has a proposed liquefaction capacity of 16.45 mtpa and includes three trains and also modifications to the Trunkline Gas pipeline.
In December 2024, Energy Transfer’s unit entered into a 20-year LNG sale and purchase agreement (SPA) with Chevron.
Under the SPA, Energy Transfer LNG will supply 2 mtpa to Chevron, subject to Energy Transfer LNG taking FID on the project.
Besides the Chevron deal, Energy Transfer previously said it had entered into definitive long-term LNG offtake contracts for 7.9 mtpa of LNG.
The company announced six SPAs during 2022 and the customers include China Gas, Gunvor, ENN, SK Gas, and Shell.
In July 2023, the company also entered into three non-binding HOAs related to the long-term LNG offtake from this project for an aggregate of 3.6 mtpa of LNG.
One of the deals is with Chesapeake and Gunvor, the second deal is with EQT, and the third HOA is with a Japanese customer.
Energy transfer also needs to secure approval for non-FTA LNG exports.
Last year, Energy Transfer’s unit Lake Charles Exports asked the US DOE for expedited action on its pending application for non-FTA LNG exports from the proposed Lake Charles LNG export facility.
In the meantime, US President Donald Trump lifted a moratorium by the former Biden administration on non-FTA LNG export permits last month.
The US DOE recently issued a conditional non-FTA approval to Venture Global LNG’s proposed CP2 LNG project in Louisiana.