MidOcean Energy (“MidOcean”), an LNG company formed and managed by EIG, a leading institutional investor in the global energy and infrastructure sectors, today announced that it has entered into a definitive agreement with Tokyo Gas Co., Ltd (“Tokyo Gas”) 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 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 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.
R. 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.”
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.
Mr. Venter said, “With today’s announcement, MidOcean is taking the first step toward realizing its vision to build a material pure play LNG business that we expect will support the world’s transition to a Net Zero future. We see a number of opportunities to further expand MidOcean’s position in supplying LNG markets around the world and look forward to working with our new partners and customers.”
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.
EIG is a leading institutional investor in the global energy and infrastructure sectors with $24.0 billion under management as of June 30, 2022. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 40-year history, EIG has committed over $41.5 billion to the energy sector through over 387 projects or companies in 38 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com or MidOcean’s website at www.midoceanenergy.com.
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