Washington, United States:
MidOcean Energy (“MidOcean”), an LNG firm fashioned and managed by EIG, a number one institutional investor in the worldwide vitality and infrastructure sectors, as we speak introduced that it has entered right into a definitive settlement with Tokyo Gas Co., Ltd (“Tokyo Gas”) to purchase Tokyo Gas’ pursuits in a portfolio of 4 Australian built-in LNG tasks.
Under the phrases of the settlement, MidOcean will purchase Tokyo Gas’ pursuits in Gorgon LNG, Ichthys LNG, Pluto LNG and Queensland Curtis LNG for whole money consideration of US$2.15 billion. These built-in tasks span Australia’s western and jap seaboard and are main suppliers of LNG to Asia, with a various set of long-dated take or pay contracts with funding grade counterparties, and to Australia’s home gasoline markets. The portfolio is anticipated to generate roughly 1 million tonnes every year of LNG internet to MidOcean, manufacturing that’s underpinned by long-life reserves and a globally aggressive price construction. The portfolio advantages from skilled operators, together with Chevron, INPEX, Woodside and Shell, and spans the LNG worth chain from upstream operations to midstream, liquefaction and gross sales.
The acquisition marks the launch of MidOcean’s technique to construct a high-quality, diversified, world ‘pure play’ built-in LNG firm and leverages EIG’s in depth investing expertise in the worldwide LNG sector, underpinned by a number of billion {dollars} of commitments to a number of LNG tasks over the previous 20 years, most just lately together with the acquisition of a controlling curiosity in GNL Quintero S.A., the biggest LNG regasification terminal in Chile. The transaction can be in-line with the Tokyo Gas Group’s Management Vision, “Compass 2030”, the place Tokyo Gas continues to exhibit management in the transition to Net-Zero CO2 emissions.
R. Blair Thomas, EIG’s Chairman and CEO, stated, “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 introduced that LNG veteran De la Rey Venter, previously with Shell, joined MidOcean as Chief Executive Officer, bringing 25 years of expertise in world LNG working, dealmaking and business management.
Mr. Venter stated, “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 anticipated to shut in first half of 2023, topic to customary closing circumstances, together with Australian regulatory approvals.
Barrenjoey, Barclays and JP Morgan acted as EIG’s monetary advisors in reference to this transaction and White & Case acted as EIG’s authorized advisor.
About EIG
EIG is a number one institutional investor in the worldwide vitality and infrastructure sectors with $24.0 billion below administration as of June 30, 2022. EIG specializes in non-public investments in vitality and energy-related infrastructure on a world foundation. During its 40-year historical past, EIG has dedicated over $41.5 billion to the vitality sector by way of over 387 tasks or corporations in 38 international locations on six continents. EIG’s shoppers embrace many of the main pension plans, insurance corporations, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with workplaces in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For extra data, please go to EIG’s web site at www.eigpartners.com or MidOcean’s web site at www.midoceanenergy.com.
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