EIG’s MidOcean boosts its stake in giant Australian LNG project

March 12th, 2026

MidOcean Energy, a liquefied natural gas (LNG) player formed and managed by the U.S.-headquartered investment company EIG Global Energy Partners (EIG), has expanded its exposure to a liquefied natural gas (LNG) project off the northwest coast of Western Australia (WA), with the acquisition of additional interest.

Gorgon; Source: Chevron

MidOcean has entered into definitive agreements with Japan’s JERA to buy Gorgon, which holds the Japanese firm’s 0.417% interest in the Chevron-operated Gorgon LNG project, increasing its interest to 1.417%. The transaction perimeter also includes JERA’s 0.735% interest in the Ichthys LNG project.

Subject to the satisfaction of relevant conditions precedent, the interests in Gorgon and Ichthys will be sold to MidOcean. Afterward, the Ichthys interest shall be transferred, subject to the satisfaction of further conditions, to an existing joint venture participant in the project.

R. Blair Thomas, MidOcean Chairman and EIG CEO, commented: “This transaction advances MidOcean’s strategy to build a scaled, globally diversified LNG company anchored by high-quality assets and counterparties. Increasing our position in Gorgon enhances the quality and durability of our portfolio while expanding our equity exposure to one of the industry’s benchmark LNG projects.

“Looking ahead, our collaboration with JERA including exploring the establishment of a strategic alliance positions us to pursue additional high-quality opportunities in a disciplined and repeatable way.”

The buyer claims that this acquisition increases its equity exposure to a large-scale, long-life, integrated LNG project, further strengthening its portfolio of high-quality producing assets. In parallel, MidOcean and JERA plan future collaborations, exploring opportunities in LNG and adjacent energy transactions globally with the aim of creating a strategic alliance.

De la Rey Venter, CEO of MidOcean, highlighted: “The acquisition adds incremental uncontracted equity volumes, increasing our ability to optimise across our portfolio and capture value through commodity cycles.

“Gorgon is a high-quality, cash-generative asset with long reserve life and strong operating performance. Deepening our relationship with JERA also strengthens our ability to originate and execute future transactions in the global LNG market.”

This is perceived to reflect a shared objective to pursue disciplined growth and unlock additional sources of value across the LNG value chain. The parties aim to close the transaction during the first half of 2026, subject to customary closing conditions, including regulatory approvals.

Ryosuke Tsugaru, JERA’s Senior Managing Executive Officer and Chief Low Carbon Fuel Officer, emphasized: “Australia remains strategically important to JERA as a trusted and reliable LNG supplier, and we value the longstanding partnerships we have built there.

“Through our ongoing portfolio optimisation, we are strengthening our ability to support long-term energy security for Australia, Japan and the broader region. JERA looks forward to collaborating with MidOcean Energy across the LNG value chain.”

While UBS acted as financial advisor to MidOcean, White & Case acted as legal advisor. Gorgon LNG is supplied by the Gorgon and Jansz-Io gas fields in the Carnarvon Basin offshore Western Australia and comprises three LNG trains with total nameplate capacity of approximately 15.6 mtpa.

The project encompasses domestic gas supply and condensate production, supported by extensive offshore and onshore infrastructure on Barrow Island. A final investment decision (FID) for the Gorgon Stage 3 development was disclosed last year.

The A$3 billion ($1.98 billion) backfill development will connect the offshore Geryon and Eurytion gas fields in the Greater Gorgon Area to the existing subsea gas gathering infrastructure and processing facilities on Barrow Island.

Currently, the Gorgon project is a joint venture of the Australian subsidiaries of Chevron (47.3%, operator), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), MidOcean Energy (1%), and JERA Co. (0.417%).