Japanese shipping group NYK will invest $221m in Diamond Gas MidOcean and take 87.4% of its voting rights as it expands its exposure to LNG projects and shipping, according to NYK.
The company will subscribe for all 211,876,228 shares to be issued by Diamond Gas MidOcean through a third-party allotment approved by its board on July 30.
Mitsubishi Corporation currently owns 100% of Diamond Gas MidOcean. Following the capital increase, Diamond Gas MidOcean is expected to become a specified subsidiary of NYK and operate as a jointly owned company of the two Japanese groups.
The 87.4% interest applies to Diamond Gas MidOcean rather than directly to MidOcean Energy. The size of NYK’s resulting indirect interest in MidOcean Energy has not been disclosed.
At the end of March 2026, Diamond Gas MidOcean had total assets of $36.2m, net assets of $34.8m and share capital of $30.5m. It recorded no net sales and posted an annual profit of $1.84m. The transaction is subject to competition-law and other regulatory approvals and is scheduled to close between August and September 2026. NYK expects the investment to have an immaterial effect on its consolidated results for the financial year ending March 31, 2027.
NYK also plans to establish a strategic partnership with MidOcean Energy covering the marine transportation of LNG. MidOcean Energy has interests in the Gorgon LNG, Pluto LNG, Queensland Curtis LNG, LNG Canada and Peru LNG projects.
NYK already participates in the Wheatstone LNG project in Western Australia and Cameron LNG in Louisiana, alongside its LNG-fuelled vessel transportation and LNG bunkering businesses. Wheatstone has production capacity of up to 8.9m tonnes per year, while Cameron’s three liquefaction trains have combined capacity of 12m tonnes per year.
Founded in 1885 and headquartered in Tokyo, NYK is a Japanese transport and logistics group active in liner shipping, logistics, automotive transportation, dry bulk shipping and energy transportation.
Diamond Gas MidOcean is a London-headquartered investment company established on November 3, 2023.