MidOcean Energy to increase stake in Peru LNG to 49%

Liquefied natural gas (LNG) business MidOcean Energy has signed a deal to acquire an additional 15% interest in Peru LNG (PLNG), taking its stake in the South American export facility to 49%.

MidOcean will buy its additional stake from Hunt Oil Company, which will own 35% of the project post-transaction. Hunt will, however, remain the operation of PLNG post-acquisition.

Saudi Arabian oil and gas giant Aramco supported the transaction, undertaking key technical and commercial due diligence as well as engaging with key stakeholders for transaction approval. Aramco will also fund the transaction.

Aramco’s investment in MidOcean strengthens the partner’s position in the global LNG market and will provide both parties with further exposure to the only LNG export project in South America.

Aramco’s indirect stake in PLNG will amount to 17.2%. In addition to EIG and Aramco, Mitsubishi Corporation is invested in MidOcean, among other blue-chip investors.

De la Rey Venter, CEO of MidOcean, said, “Our belief in the long-term fundamentals of the LNG market and in the strength of PLNG’s unique position as the only LNG export facility in South America remains steadfast.

“We look forward to strengthening our partnership with Hunt Oil and the other PLNG co-venturers and continuing to support the project’s positive impact on the Peruvian energy market.”

PLNG owns and operates the only LNG export facility in Pampa Melchorita, South America, 170 kilometres south of Lima, Peru.

PLNG’s assets consist of a natural gas liquefaction plant with 4.45 million tonnes per annum processing capacity; a 408-kilometre pipeline with 1,290 million cubic feet per day (mmcf/d) capacity; two 130,000 m3 storage tanks; a 1.4-kilometre marine terminal; and a truck loading facility with a capacity of up to 19.2 mmcf/d.