MidOcean Energy, a liquefied natural gas (LNG) company managed by EIG, a leading institutional investor in energy and infrastructure, has announced a definitive agreement to acquire an additional 15% interest in Peru LNG (PLNG) from Hunt Oil Company. This acquisition will increase MidOcean’s stake in PLNG from 20% to 35%.
The transaction, which will be fully funded by Aramco, also results in Aramco raising its interest in MidOcean to 49%. Aramco’s investment further solidifies both companies’ positions in the global LNG market and enhances their exposure to the only LNG export project in South America. Aramco’s indirect stake in PLNG will be 17.2%. Other notable investors in MidOcean include EIG and Mitsubishi Corporation.
Following the deal, Hunt’s interest in PLNG will decrease from 50% to 35%, but Hunt will continue to operate PLNG. Hunt will retain a 25.2% stake in the Camisea upstream project in Peru, maintaining its commitment to the region.
PLNG operates the only LNG export facility in South America, located in Pampa Melchorita, Peru. The facility includes a gas liquefaction plant with a 4.45 million metric tons per annum (mmtpa) capacity, a 408-kilometer pipeline, two 130,000 m³ storage tanks, a 1.4-kilometer marine terminal, and a truck loading facility with a capacity of up to 19.2 million cubic feet per day (mmcf/d). PLNG is one of only two LNG production facilities in Latin America.
De la Rey Venter, CEO of MidOcean, stated: “Increasing our stake in PLNG aligns with MidOcean’s strategy to build a diversified and resilient global LNG portfolio. We are confident in the long-term prospects of the LNG market and the unique position of PLNG as South America’s sole LNG export facility. We look forward to enhancing our partnership with Hunt Oil and other PLNG co-venturers and supporting the project’s positive impact on the Peruvian energy market.”
