MidOcean Energy Purchases Tokyo Gas’ Shares in Australian LNG Projects

EIG’s MidOcean Energy finalized its previously announced agreement to acquire Tokyo Gas’ interests in a portfolio of integrated LNG projects in Australia. The interest acquisition includes stakes in the Gorgon LNG, Pluto LNG, and Queensland Curtis LNG 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. “This transaction accelerates our ambition to be a leading player in the global LNG sector for decades to come, and we look forward to servicing key LNG customers in Japan, Asia and across the globe.”

These projects are benefitted by experience from operators such as Chevron, Woodside Energy, and Shell, and contains upstream and midstream operations, liquefaction, and sales as part of its LNG value chain. Per the terms of the acquisition, MidOcean will open an office in Perth to support and oversee the projects.

“We are strong believers in the role of LNG as a key enabler of the energy transition and have formed MidOcean to provide partners and investors differentiated exposure to the asset class. With these foundational assets, MidOcean has entered key projects and markets in Asia, which form the center of gravity of the global LNG business,” said R. Blair Thomas, EIG’s Chairman and CEO. “De la Rey and team have an ambitious growth strategy that is expected to build on this foundation and expand geographically. Our focus on integrated projects is central to the strategy and affords MidOcean the opportunity to capture value across the full LNG value chain.”

The Gorgon Project is a large-scale natural gas project comprised of three trains with a combined capacity of 15.6 MTPA and a domestic gas plant. Energy provided by Gorgon is expected to put Australia in a position to meet future demand and provide clean-burning fuel, both domestically and internationally. The project in is slated to receive high-pressure closures from Sypris Technologies by the end of 2024.

Loading arm at Gorgon LNG; Image Credits: Chevron

Pluto LNG also resides in Western Australia and has been supported by recent turbomachinery deliveries for its role in processing gas from the offshore Scarborough Joint Venture. Woodside is the sole operator of the Pluto LNG facility and is currently building Pluto Train 2 onsite. The development of the second LNG train was made possible with Baker Hughes’ delivery of six LM6000PF+ aeroderivative gas turbines and 14 centrifugal compressors.