MidOcean closes $2.15bn purchase of Tokyo Gas' Aussie LNG Interests

MidOcean Energy, an LNG company backed by US-based investor EIG, March 28 announced the completion of the $2.15bn deal to acquire Tokyo Gas' interests in a portfolio of Australian LNG projects.

This acquisition, initially disclosed in 2022, encompasses Tokyo Gas' stakes in the Gorgon LNG, Pluto LNG, and Queensland Curtis LNG projects. In conjunction with the transaction, MidOcean will establish an office in Perth, Australia, to provide support and oversight for the projects.

“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,” said De la Rey Venter, MidOcean’s CEO. 

Venter added, "This transaction accelerates our ambition to become a leading player in the global LNG sector for decades to come, and we eagerly anticipate serving key LNG customers in Japan, Asia, and the globe."

The portfolio is expected to generate approximately 1mn mt/year of LNG net to MidOcean. While the original deal also included Tokyo Gas's stake in the Inpex-led Ichthys LNG project, Inpex exercised its pre-emptive rights in January of this year to acquire Tokyo Gas's participating interest in the project.

Tokyo Gas, in a separate statement, affirmed that the deal's value remains unchanged at $2.15bn, but the actual transfer amount may vary based on contractual conditions. The company stated, "We are currently conducting a detailed examination of the impact of this transfer on our performance for the fiscal years ending March 2024 and March 2025."

For MidOcean, this deal is part of a series of recent transactions. In February of this year, the company acquired a stake in a Peruvian LNG facility from Korea's SK Earthon. Additionally, in September of last year, MidOcean welcomed energy giant Saudi Aramco as a minority investor.