MidOcean Energy, a unit of U.S. fund EIG, said on Friday it had agreed with Tokyo Gas Co Ltd to buy the Japanese company’s stakes in a portfolio of four Australian liquefied natural gas (LNG) projects for $2.15 billion.
The acquisition marks the launch of MidOcean’s strategy to build a diversified, global integrated LNG company and leverages EIG’s extensive investing experience in the global LNG sector, MidOcean said in a statement.
The portfolio is expected to generate about 1 million tonnes per annum of LNG net to MidOcean, it said, adding the transaction was expected to close in the first half of 2023, subject to customary closing conditions, including Australian regulatory approvals.
Tokyo Gas said in a separate statement the sale was part of a portfolio reshuffle to allocate funds to growth areas, and it would not affect its procurement of the fuel.
“It does not mean that we will stop investing in upstream LNG assets. We will continue to invest in highly efficient areas, including upstream interests,” a Tokyo Gas spokesperson said.
Tokyo Gas will sell its 5% stake in Woodside’s Pluto LNG project, 1% stake in Chevron’s Gorgon LNG, 1.25% stake in QGC’s Queensland Curtis LNG and 1.575% stake in Inpex’s Ichthys LNG, but it will keep its 3.07% stake in Santos’s Darwin LNG.
Japan’s biggest city gas supplier did not disclose the terms of the transaction and said it was assessing the impact from the deal on its earnings for the current financial year to March 31.
