MidOcean Energy Announces Acquisition of 20% Interest in Peru LNG

MidOcean Energy, an LNG company under the management of investment firm EIG, has finalized an agreement with energy company SK Earthon to acquire a 20% stake in Peru LNG (PLNG). PLNG is the owner and operator of South America's inaugural LNG export plant, which is situated in Pampa Melchorita, approximately 170 kilometers south of Lima, Peru.

According to MidOcean Energy, PLNG's assets encompass a natural gas liquefaction plant with a processing capacity of 4.45 million metric tons per annum (mmtpa), a wholly owned 408-kilometer-long pipeline with a capacity of 1,290 million cubic feet per day (mmcf/d), two 130,000 cubic meter storage tanks, a fully owned 1.4-kilometer-long marine terminal, and a truck loading facility with a capacity of up to 19.2 mmcf/d.

The PLNG facility is under the operational purview of the Hunt Oil Company and stands as one of only two LNG production facilities in Latin America. MidOcean Energy emphasized the strategic significance of PLNG in the Peruvian natural gas sector, serving as a pivotal avenue for the monetization of natural gas resources through export. Furthermore, PLNG plays a crucial role in the supply of LNG to residential and industrial customers, as well as supporting CNG-powered vehicles across various cities in Peru.

In parallel, MidOcean Energy is progressing with its acquisition of Tokyo Gas' interests in four Australian LNG projects for a total of $2.15 billion. This transaction is expected to conclude by the end of February. The acquisition aligns with MidOcean Energy's overarching strategy to establish a robust and diversified LNG portfolio on a global scale.

It is worth noting that in 2023, energy major Aramco entered definitive agreements to acquire a strategic minority stake in MidOcean Energy for $500 million, with Aramco retaining the option to increase its shareholding and associated rights in the company in the future. This move by Aramco further underscores the company's commitment to actively participate in the LNG sector through strategic investments.

MidOcean Energy's acquisition of a 20% stake in Peru LNG represents a significant stride in the company's pursuit of a diversified and resilient global LNG portfolio. The strategic importance of PLNG in the Peruvian natural gas landscape, combined with its role in facilitating LNG exports and meeting domestic demand, positions it as a valuable asset in MidOcean Energy's portfolio. As the energy landscape continues to evolve, these strategic moves by MidOcean Energy contribute to shaping the company's role in the international LNG market.