MidOcean Energy, a portfolio company of private equity investor EIG, has completed the acquisition of Tokyo Gas' interests in a portfolio of integrated LNG projects in Australia.
The $2.1bn all-cash deal was first announced in October 2022.
The deal includes stakes in the Gorgon LNG, Pluto LNG, and Queensland Curtis LNG projects, which are operated by Chevron, Woodside, and Shell, respectively.
The acquired portfolio spans the entire LNG value chain, from upstream operations to midstream, liquefaction, and sales.
MidOcean CEO De la Rey Venter 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.”
Barrenjoey, Barclays, and JP Morgan provided financial advisory services to EIG and MidOcean for this transaction. Legal guidance was offered by White & Case.
EIG chairman and CEO R Blair Thomas said: “We are strong believers in the role of LNG as a key enabler of the energy transition and have formed MidOcean to provide partners and investors differentiated exposure to the asset class.
“With these foundational assets, MidOcean has entered key projects and markets in Asia, which form the center of gravity of the global LNG business.”
In conjunction with the acquisition, MidOcean is set to establish a new office in Perth, Australia. This office will play a crucial role in managing and supporting the newly acquired projects.
Furthermore, the agreement encompassed Tokyo Gas's 1.575% stake in the Ichthys LNG project via its Australian project subsidiaries. This project is operated by Inpex.
However, earlier this year, Inpex announced its intention to utilise its preemptive rights to acquire Tokyo Gas's stake in the project.
