Japan’s petroleum refiner Idemitsu Kosan has committed $500 million to LNG investment company MidOcean Energy as part of MidOcean’s equity raise of $1.2 billion, as the Japanese refining giant is looking to enter the global LNG business on a full-scale basis.
Through the deal, Idemitsu Kosan looks to invest globally in LNG projects and capture business opportunities in growth sectors through strategic partnerships, the Japanese company said on Tuesday.
Idemitsu expects to finalize the contract for the investment in MidOcean by the end of this month.
“The Investment marks the first step in our full-scale entry into the LNG business. Through the establishment of a strategic partnership with MidOcean Energy, we aim to secure business opportunities in the LNG sector while continuing its efforts to further enhance the stable supply of energy,” the Japanese firm said.
MidOcean Energy, which is backed by Saudi Aramco, among others, was formed and is managed by EIG, an institutional investor in the global energy and infrastructure sectors with $25.4 billion assets under management as of December 31, 2025.
MidOcean Energy has diverse LNG interests globally, including stakes in LNG Canada, Gorgon LNG, Pluto LNG, QCLNG, and Peru LNG.
In one of the latest deals, MidOcean in September agreed to buy a 20% interest in the operational LNG Canada Project from Malaysia’s state energy firm Petronas as part of a broader deal to buy 20% in Petronas’ key entities in Canada.
MidOcean’s equity capital raise of more than $1.2 billion, announced today, consists of Idemitsu’s $500-million commitment and additional commitments of $790 million from both new and existing investors.
MidOcean said it would continue to raise capital, with a cumulative target of up to $2 billion from new investors.
“The Company has received substantial interest from investors seeking long-term exposure to the LNG sector, supported by strong demand fundamentals, constrained supply growth and LNG’s role in supporting energy security and the energy transition,” MidOcean said, adding that “Recent events only reinforce the strength of the MidOcean investment thesis.”
Recent events include Qatar, the world’s second-largest LNG exporter, shutting in its LNG operations and exports amid the Middle East war.
By Charles Kennedy for Oilprice.com
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