MidOcean Energy has concluded its funding round for the year with over $4 billion in closed and pending commitments from new and existing investors. The pure-play liquefied natural gas (LNG) company managed by Washington-based EIG said in a press release, “The capital committed significantly exceeded the company’s original target of $2 billion, reflecting continued confidence in MidOcean’s strategy, portfolio, team and long-term growth outlook”.
“The raise includes commitments from strategic investors, sovereign-linked institutions and financial investors”, MidOcean said. “Among the new investors are the Private Department of Sheikh Mohammed bin Khalid Al Nahyan, Idemitsu Kosan, NYK Line (through Diamond Gas MidOcean), The Arab Energy Fund, Shizuoka Gas and certain Korean institutional investors”. EIG chief executive and MidOcean chair Blair Thomas said, “We believe LNG will continue to play an essential role in supporting energy security and global economic growth, and that MidOcean is well-positioned to benefit from these long-term market fundamentals. Current events also highlight the importance of geographic diversification with the ability to reliably serve clients from multiple delivery points”.
In its newest project, MidOcean is taking part in phase 2 of LNG Canada in British Columbia via a partnership with Petroliam Nasional Bhd (Petronas). The Shell-led LNG Canada joint venture announced a positive final investment decision September 29. “MidOcean’s participation in phase 2 will increase associated LNG volumes, from 0.7 mtpa [million metric tons per annum] to 1.4 mtpa, and deepen its position across the integrated LNG value chain, spanning upstream gas production in the North Montney and liquefaction and export through LNG Canada”, MidOcean said separately on September 29. Phase 2 will double the facility’s capacity to 28 million metric tons per annum (MMtpa) by building two additional trains.
LNG Canada, which has a current capacity of 14 MMtpa through two trains, began operations last year, debuting Canada as an LNG exporting country. The consortium expects to begin phase 2 operations “in the early 2030s”, Shell said. “LNG Canada will continue to operate under an equity lifting structure, whereby each joint venture participant is responsible for the offtake of its proportionate share of LNG production and for bringing its share of gas supply”, Shell said. MidOcean chief executive De la Rey Venter said, “We have long believed in LNG Canada as one of the world’s most advantaged projects: with the scale, resource depth and Pacific Basin access to deliver reliable energy to global markets for decades”.
MidOcean’s involvement in LNG Canada phase 2 is via a 20 percent stake in North Montney LNG LP, which holds Malaysian state-owned Petronas’ 25 percent stake in LNG Canada. That was part of a transaction through which MidOcean also acquired a 20 percent interest in the North Montney Upstream Joint Venture (NMJV), which holds Petronas’ upstream investment in Canada. According to MidOcean’s announcement of the transaction last year, the NMJV had over 800,000 gross acres of mineral rights with 53 trillion cubic feet of reserves and contingent resources. Also this year MidOcean signed a deal to acquire a 50 percent stake in Delfin Midstream Inc’s second floating LNG production vessel, which would be positioned offshore Louisiana – subject to a final investment decision.
“Delfin and MidOcean are also collaborating on future pre-development activities to accelerate a potential third floating LNG vessel (FLNG3) following FLNG2, reflecting the parties’ shared commitment to expanding Gulf Coast LNG supply to meet growing global demand”, said a joint statement July 15. In Australia, while INPEX Corp “pre-empted” fellow Japanese company JERA Co Inc’s sale of a minority stake in Ichthys LNG to MidOcean, JERA and MidOcean are completing another transaction signed this year for Gorgon LNG. MidOcean will acquire JERA’s 0.417 percent stake and raise its stake to 1.417 percent. Gorgon comprises three liquefaction trains with a combined production of up to 15.6 MMtpa of LNG and a domestic gas plant with a capacity of 300 terajoules a day, according to operator Chevron Corp. Located on Barrow Island, the plants process feed gas from the offshore Gorgon and Jansz-Io fields.
source: rigzone.com