March 12, 2026 [Reuters]- MidOcean Energy, an LNG company backed by ​U.S. energy-focused private equity firm EIG, has agreed to acquire additional Australian liquefied natural gas project stakes from ‌Japan’s JERA, the companies said on Thursday.

The transaction covers JERA’s 0.417% interest in the Chevron‑operated Gorgon project – lifting MidOcean’s stake to 1.417% – and JERA’s 0.735% interest in the Inpex-operated Ichthys LNG project, the companies said in separate statements.

They aim to close the transaction during the first half of 2026, and did not ​disclose financial terms.

A source with direct knowledge of the matter said the total deal value is under $500 million.

A JERA spokesperson ​confirmed JPMorgan acted as sell-side adviser to JERA. The company declined to comment on the deal value.

MidOcean did ⁠not immediately respond to requests for comment on the size of the deal. JPMorgan and UBS, which acted as financial adviser to ​MidOcean, declined to comment.

“This transaction advances MidOcean’s strategy to build a scaled, globally diversified LNG company anchored by high-quality assets and counterparties,” said ​MidOcean Chairman and EIG CEO R. Blair Thomas.

The deal will increase MidOcean’s exposure to one of Australia’s largest LNG projects in Chevron-operated Gorgon, strengthening its footprint in the Asia-Pacific gas market, MidOcean said in its statement.

Gorgon comprises three LNG trains with total nameplate capacity of about 15.6 million metric tons per ​annum. It is now the largest LNG exporter in Australia, which until exports from Qatar were constrained was the third-largest LNG exporter ​in the world.

MidOcean acquired its initial 1% stake in Gorgon from Tokyo Gas in 2024.

MidOcean also holds a 1.25% stake in Shell‑operated Queensland Curtis LNG, ‌and EIG ⁠was involved in a failed bid for Australia’s second-largest oil and gas producer Santos late last year.

MidOcean is a liquefied natural gas platform established by EIG, one of the world’s largest investors in energy and infrastructure, while JERA is Japan’s biggest power generation company.

MidOcean said the deal would add uncontracted equity volumes to the company portfolio. Uncontracted volumes are also known as spot cargoes, whose costs have increased ​since the beginning of the U.S. ​Israel – Iran war thanks to ⁠supply constraints.

MidOcean and JERA said they are exploring a broader strategic alliance, which could include potential cooperation across LNG supply, trading and decarbonisation initiatives.

Meanwhile, JERA retains its investments in Australia’s Wheatstone LNG project, ​the Barossa gas project and the Scarborough gas field development, the company said in its statement.

“Australia ​remains strategically important to ⁠JERA as a trusted and reliable supplier of LNG, and JERA looks forward to many more years of energy security for Australia, Japan and the region,” said Ryosuke Tsugaru, senior managing executive officer at JERA.

JERA has been ramping up new upstream and supply deals, including with the ⁠United States ​and Qatar, to rebalance its supply mix and reduce its reliance on the ​dominant supplier, Australia.

A separate source said JERA’s divestment was not unexpected and reflects a portfolio rebalancing, adding that both Gorgon and Ichthys have relatively high carbon dioxide intensity.