EIG-managed LNG player ups its stake in South America’s first LNG export terminal

MidOcean Energy, a liquefied natural gas (LNG) player formed and managed by the U.S.-headquartered investment company EIG, has boosted its interest in an LNG export plant, which is described as the inaugural facility of this type in South America, located in Pampa Melchorita, 170 kilometers south of Lima, Peru.

EIG-managed MidOcean Energy, which sees LNG not only as a critical enabler of the energy transition but also as a geopolitically strategic energy resource, gained a foothold in the South American LNG arena with the acquisition of SK earthon’s 20% interest in Peru LNG (PLNG), the owner and operator of the first LNG export facility in South America. 

The company has expanded its footprint in Peru LNG by wrapping up its purchase of an additional 15% stake in PLNG from the Texas-based Hunt Oil Company, enlarging its interest to 35%. However, Hunt will still remain in the role of the LNG project’s operator.

PLNG, which is said to be the only LNG export facility in South America and one of only two LNG production facilities in Latin America, consists of a natural gas liquefaction plant with 4.45 million tons per annum (mtpa) processing capacity; a fully-owned 408-kilometer pipeline with 1,290 million cubic feet (mmcf)/d capacity; two 130,000-cubic meter storage tanks; a fully-owned 1.4-kilometer marine terminal; and a truck loading facility with a capacity of up to 19.2 mmcf/d.

Hunt Oil Company (35%) handles the pipeline and plant operations at Peru LNG, which it owns in partnership with Shell (20%), MidOcean (35%), and Marubeni Corporation (10%). This LNG terminal can handle methane tankers carrying 90,000–174,200 cubic meters of LNG, with a full-load displacement of 118,388 tons and a draught of up to 12 meters.

EIG’s MidOcean completed the acquisition of Tokyo Gas’ interests in a portfolio of Australian-integrated LNG projects while Mitsubishi Corporation made a strategic investment in the company along with Aramco, which inked definitive agreements to get a hold of a minority stake last year, marking the Saudi giant’s first international investment in LNG.

With $24.9 billion under management as of June 30, the Washington-headquartered EIG has committed over $48.6 billion to the energy sector through 413 projects or companies in 42 countries on six continents throughout its 42-year history.