Tapping Gas

Carlyle buys Energean gas assets in Mediterranean for $945 million

The U.S.-based private equity fund is developing plans to form a new regionally focused oil and gas company amid soaring demand

An LNG tanker at the French Mediterranean port of Marseille. (Photo: Getty Images)

Carlyle Group is developing plans to form a new Mediterranean-focused oil and gas company after the private equity fund agreed to acquire Energean’s assets in Egypt, Italy and Croatia for up to $945 million.

The deal announced Thursday will allow the U.S. private equity fund to tap into the eastern Mediterranean gas market that has grown rapidly in recent years as gas demand in Egypt soars and Europe seeks alternatives to Russian gas, Reuters reports.

Carlyle International Energy Partners, which handles the firm’s non-U.S. energy investments, said the new company will upgrade existing assets and grow through acquisitions, the news agency said.

London-based Energean, whose main production comes from a gas facility off Israel’s Mediterranean coast, plans to expand to the wider Europe, Middle East and Africa region, Reuters said.