MidOcean Acquires Tokyo Gas Australian LNG $2.15B Portfolio

MidOcean Acquires Tokyo Gas Australian LNG $2.15B Portfolio
MidOcean has signed an agreement with Tokyo Gas to acquire the latter's interest in four liquefied natural gas projects in Australia.

MidOcean Energy, a company founded and managed by EIG, has agreed to acquire Tokyo Gas’ interest in four integrated liquefied natural gas (LNG) projects in Australia.

Under the terms of the agreement, MidOcean will acquire Tokyo Gas’ interests in Gorgon LNG, Ichthys LNG, Pluto LNG, and Queensland Curtis LNG for total cash consideration of US$2.15 billion. These integrated projects span Australia’s western and eastern seaboard and are major suppliers of LNG to Asia, with a diverse set of long-dated take or pay contracts with investment-grade counterparties, and to Australia’s domestic gas markets.

The portfolio is expected to generate approximately 1 million tonnes per annum of LNG net to MidOcean, production that is underpinned by long-life reserves and a globally competitive cost structure. The portfolio benefits from experienced operators, including Chevron, INPEX, Woodside, and Shell, and spans the LNG value chain from upstream operations to midstream, liquefaction, and sales.

The acquisition marks the launch of MidOcean’s strategy to build a high-quality, diversified, global ‘pure play’ integrated LNG company and leverages EIG’s extensive investing experience in the global LNG sector, underpinned by several billion dollars of commitments to multiple LNG projects over the past 20 years, most recently including the acquisition of a controlling interest in GNL Quintero, the largest LNG regasification terminal in Chile. The transaction is also in-line with the Tokyo Gas Group’s Management Vision, “Compass 2030”, where Tokyo Gas continues to demonstrate leadership in the transition to Net-Zero CO2 emissions.

“The launch of MidOcean reflects our deep belief in LNG as a critical enabler of the energy transition and the growing importance of LNG as a geopolitically strategic energy resource. We believe this transaction provides MidOcean with a foundational portfolio of cost-advantaged integrated LNG assets in a low-risk jurisdiction, ideally positioned to supply key customers in Japan, Asia, and across the globe for decades to come,” said Blair Thomas, EIG’s Chairman and CEO.

In June 2022, EIG announced that LNG veteran De la Rey Venter, formerly with Shell, joined MidOcean as Chief Executive Officer, bringing 25 years of experience in global LNG operating, dealmaking, and business leadership.

The transaction is expected to close in the first half of 2023, subject to customary closing conditions, including Australian regulatory approvals.

To contact the author, email andreson.n.paul@gmail.com



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