Aramco to acquire $500m stake in MidOcean Energy to expand global LNG reach

Aramco, a leading integrated energy and chemicals company, has solidified a significant deal in the energy sector by acquiring a strategic minority stake worth $500 million in MidOcean Energy. MidOcean Energy, managed by EIG, a distinguished institutional investor in global energy and infrastructure sectors, specializes in liquefied natural gas (LNG) ventures.

Strategic Move: Aramco’s $500 Million Investment in MidOcean Energy

MidOcean Energy has been actively pursuing interests in four Australian LNG projects, forming part of its broader strategy to establish a diversified global LNG enterprise. This collaboration with MidOcean Energy represents Aramco’s inaugural international foray into the LNG market.

Building on a Strong Foundation

This agreement between Aramco and EIG builds upon their existing relationship, which began as part of a consortium’s acquisition of a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, back in 2021.

Expanding Possibilities

The successful completion of this transaction hinges on meeting closing conditions, including regulatory approvals. Aramco also holds the option to enhance its shareholding and associated rights in MidOcean Energy at a later date.

Leadership Insights

Aramco’s President & CEO, Amin H. Nasser, expressed optimism about this acquisition, stating, “We are pleased to be strengthening our strategic partnership with EIG through this acquisition, which marks Aramco’s first international investment in LNG. We anticipate strong demand-led growth for LNG as the world continues on its energy transition journey, with gas being a vital fuel and feedstock in various industries.”

Global LNG Aspirations

Nasir K. Al-Naimi, Aramco Upstream President, emphasized, “This is an important step in Aramco’s strategy to become a leading global LNG player. We see significant opportunities in this market, which is positioned for structural, long-term growth. MidOcean Energy is well-equipped to capitalize on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players to identify and unlock new opportunities at a global level.”

EIG’s Perspective

Blair Thomas, EIG Chairman and CEO, shared, “Energy transition informs every investment decision we make, and we believe LNG has a key role to play in enabling an orderly transition that balances society’s twin goals of decarbonization and energy security. Concurrent with that, we believe the LNG industry is ripe for change and there is a role for a nimble, pure-play company like MidOcean Energy. While our initial focus is on the announced transactions in Australia, we believe the opportunity set is global. We are excited to expand our existing partnership with Aramco to include this important initiative.”

MidOcean Energy’s Vision

De la Rey Venter, MidOcean Energy CEO, expressed, “It is an honor for MidOcean Energy to have Aramco as a key shareholder and strategic partner. We share the conviction that LNG is an integral enabler of the global energy transition, and we believe that the global LNG industry has strong fundamentals for many decades to come. Synergistic partnerships are core to how MidOcean Energy will do business, grow and thrive. In Aramco, we have a partner that has long-term thinking in its DNA and an unwavering commitment to enduring collaborations. We look forward to pursuing many new opportunities together.”

This strategic investment by Aramco in MidOcean Energy marks a significant milestone in the LNG industry, aligning with the global shift towards cleaner energy sources. Stay tuned for updates on this impactful partnership.