MidOcean Energy to acquire four Tokyo Gas LNG stakes in Australia

Oct. 10, 2022

EIG Global Energy Partners entity MidOcean Energy is to acquire the interests of Tokyo Gas Co. Ltd. in four LNG projects in Australia. The interests include 5% of Pluto LNG, 2.5% of Train 2 in Queensland Curtis LNG, and others.

Rick Wilkinson

EIG Global Energy Partners entity MidOcean Energy is to acquire the interests of Tokyo Gas Co. Ltd. in four LNG projects in Australia. The interests include 5% of Pluto LNG (operated by Woodside Energy Group Ltd.), 2.5% of Train 2 in Queensland Curtis LNG (operated by Shell PLC), 1.575% of Ichthys LNG (Operated by Inpex Corp.), and 1% of Gorgon LNG (operated by Chevron Corp).

The Pluto, Gorgon, and Ichthys projects are offshore Western Australia while the Queensland Curtis project is on Curtis Island near Gladstone on Queensland’s central east coast. All are major suppliers of LNG to Asian markets.

EIG said the portfolio, acquired for US$2.15 billion, is expected to generate around 1 million tonnes/year of LNG net to MidOcean and that production is underpinned by long-life reserves and globally competitive cost structures. “The portfolio spans the LNG value chain from upstream operations to midstream, liquefaction and sales,” EIG said.

The transaction is expected to close first-half 2023 but is subject to customary Australian regulatory approvals and preemption rights of other members of the LNG joint ventures. It has been reported that Woodside is considering a preemption of the deal.

The acquisition marks the launch of MidOcean’s strategy to build what it describes as a high-quality, diversified, global integrated LNG company, and leverages EIG’s investing experience in the global LNG sector.

Former Shell executive De la Rey Venter recently joined MidOcean as chief executive officer. He commented that the company sees a number of opportunities to further expand MidOcean’s position in supplying LNG markets around the world.