MidOcean Energy, an LNG company formed and managed by institutional investor EIG, has signed a definitive agreement with Tokyo Gas to acquire its interests in four Australian integrated LNG projects.
Under the terms of the agreement, MidOcean will acquire Tokyo Gas’ interests in Gorgon LNG, Ichthys LNG, Pluto LNG and Queensland Curtis LNG for $2.15 bill cash.
The projects span Australia’s western and eastern seaboards and they are major suppliers of LNG to Asia, with a diverse set of long-dated take or pay contracts, plus to Australia’s domestic gas markets.
They are expected to generate around 1 mill tonnes per annum of LNG net to MidOcean, production that is underpinned by long-life reserves and a globally competitive cost structure, the company claimed.
Operated by worldwide energy majors, including Chevron, INPEX, Woodside and Shell, they span the LNG value chain from upstream operations to midstream, liquefaction and sales.
This acquisition marks the launch of MidOcean’s strategy to build a diversified, global ‘pure play’ integrated LNG company and leverages EIG’s investing experience in the global LNG sector, underpinned by several billion dollars of commitments to multiple LNG projects over the past 20 years.
Among the most recent deals, was the acquisition of a controlling interest in GNL Quintero SA, the largest LNG regasification terminal in Chile.
Blair Thomas, EIG’s Chairman and CEO, said, “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,” he said.
The transaction is expected to close in first half of 2023, subject to customary closing conditions, including Australian regulatory approvals.
Barrenjoey, Barclays and JP Morgan acted as EIG’s financial advisors in connection with this transaction and White & Case acted as EIG’s legal advisor.
