MidOcean Energy to acquire 20% stake in Peru LNG

MidOcean Energy, an LNG company formed and managed by investment company EIG, has entered into a definitive agreement with energy company SK Earthon to acquire SK’s 20% interest in Peru LNG (PLNG).

PLNG owns and operates the first LNG export plant in South America, located in Pampa Melchorita, 170 kilometers south of Lima, Peru.

According to MIdOcean Energy, PLNG’s assets comprise a natural gas liquefaction plant with 4.45 mmtpa processing capacity, a fully-owned 408-kilometer-long pipeline with 1,290 mmcf/d capacity, two 130,000 m3 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.

PLNG facility is operated by Hunt Oil Company and is one of only two LNG production facilities in Latin America, MidOcean Energy noted, adding:

“We believe PLNG is a highly strategic asset to the Peruvian natural gas sector, providing a key route to monetize its natural gas resources via export. It also plays an important role in supplying LNG to residential and industrial customers as well as CNG-powered vehicles in various cities across the country.”

De la Rey Venter, MidOcean Energy CEO, commented: “We’re excited about this acquisition as it reflects another notable step in MidOcean’s strategy to create a global, diversified and resilient LNG portfolio... We look forward to joining the PLNG partnership and contributing to the long-term prosperity of that venture and its work toward being a positive role in the Peruvian energy market.”

MidOcean is also in the process of completing its acquisition of Tokyo Gas’ interests in four Australian LNG projects for $2.15 billion, which is targeted to close at the end of February.

To remind, in 2023, energy major Aramco signed definitive agreements to acquire a strategic minority stake in MidOcean Energy for $500 million, with Aramco having the option to increase its shareholding and associated rights in the company in the future.