EIG said on Tuesday that the transaction includes a 20 percent interest in the North Montney upstream joint venture (NMJV), which holds Petronas’ upstream investment in Canada, and a 20 percent interest in the North Montney LNG partnership (NMLLP), which holds Petronas’ 25 percent participating interest in the LNG Canada project.
The firm did not provide the pricing details of the deal.
LNG Canada is Canada’s first LNG export project, and it shipped its first LNG cargo earlier this year.
At 40 percent, Shell has the largest working interest in the LNG Canada JV.
Besides Petronas, other partners include PetroChina, Mitsubishi Corporation, and Kogas.
One of the largest private investments in Canadian history, the plant will initially produce 14 million tonnes per annum (mtpa) LNG for export.
With a proposed Phase 2 expansion, Shell and its partners plan to double the terminal’s capacity to 28 mtpa.
Moreover, the NMJV is a partnership that holds more than 800,000 gross acres of mineral rights with 53 trillion cubic feet of reserves and contingent resources.
Following completion of the transaction, MidOcean will hold a position across the integrated value chain, spanning upstream resource development in the North Montney and downstream liquefaction and export through LNG Canada via its participation in NMLLP, the firm said.
Through this partnership with Petronas, MidOcean will have the ability to secure an associated LNG volume of 0.7 mtpa with potential to grow through LNG Canada Phase 2, MidOcean noted.
Fourth quarter
According to MidOcean, the transaction is anticipated to close in the fourth quarter of 2025, subject to customary regulatory approvals.
“We are excited to enter into this long-term partnership with PETRONAS, a leader in the LNG industry and a company that we respect,” De la Rey Venter, CEO of MidOcean, said.
“This investment is a clear reflection of our conviction in the future of LNG and its long-term role to help deliver global energy security and to underpin a practical and affordable energy transition,” he added.
Petronas said in a separate statement that it remains committed to its investments in Canada and this equity participation will not affect its existing control over NMJV and NMLLP.
The company said that its partnership with MidOcean “underscores the strength and long-term potential of the North Montney assets, while reinforcing Canada’s position as a compelling destination for global energy investment and LNG industry growth.”
MidOcean continues to expand LNG portfolio
MidOcean was established to build a diversified global LNG portfolio, with interests in Gorgon LNG, Pluto LNG, QCLNG, and Peru LNG.
Last year, MidOcean completed its acquisition of Tokyo Gas Co.’s interests in a portfolio of Australian integrated LNG projects.
MidOcean also completed a deal to buy an additional 15 percent interest in Peru LNG from Hunt Oil. MidOcean’s interest in Peru LNG now stands at 35 percent,
In addition, EIG announced in September 2024 that energy behemoth Saudi Aramco will increase its stake in MidOcean and help the latter boost its stake in Peru LNG.
In September 2023, Aramco agreed to buy a minority stake in MidOcean Energy for $500 million.
EIG said Aramco will increase its interest in MidOcean to 49 percent.
In addition to EIG and Aramco, Japan’s Mitsubishi Corporation invested in MidOcean, among other blue-chip investors.
Earlier this year, MidOcean signed a heads of agreement with Energy Transfer to jointly develop the latter’s Lake Charles LNG export facility in Louisiana.
Under the HoA, MidOcean would commit to fund 30 percent of the construction costs and be entitled to receive 30 percent of the LNG production, about 5 million tonnes per annum, from Lake Charles LNG.
