Origin Energy suitor EIG nabs stakes in three major LNG projects

Already a subscriber?EIG, the private equity group which partnered with Brookfield for a failed $20 billion takeover of Origin Energy, has secured a foothold in Australia’s gas sector, taking a minority stake in three large projects across Queensland and Western Australia.

The firm has been clear it regards LNG as an important strategic fuel for the transition to low-carbon energy and that the fuel has a strong future over 30 or 40 years. In contrast, Tokyo Gas signalled in 2022 that decarbonisation was a drive for its move to sell most of its LNG interests in Australia, saying it wanted to direct resources to “growth areas”.

Mr Kavonic said he expected EIG will still look to expand to a much greater scale in LNG and become a pre-eminent vehicle for diversified LNG exposure, foreshadowing further moves in the sector in Australia, one of the world’s top three exporters of the fuel.“Australia will likely feature heavily in future ambitions, with EIG willing to bid for assets at more robust valuations than many others, driven by a more constructive price outlook,” he said.

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