EIG’s MidOcean Energy Buys Tokyo Gas’ Interest in 4 Australian LNG Projects

Posted on 10/08/2022

For some energy CEOS, they see liquified natural gas (LNG) as a key enabler of the energy transition away from oil and is increasingly a geopolitically strategic energy source. MidOcean Energy is an LNG company formed and managed by EIG Global Energy Partners. MidOcean Energy entered into a definitive agreement with Tokyo Gas Co., Ltd to acquire Tokyo Gas’ interests in a portfolio of 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 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 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 S.A., 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 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.

Keywords: EIG Management Company, LLC (EIG Global Energy Partners).

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