MidOcean Energy secures 20% stake in Peru LNG from SK Earthon to expand global LNG portfolio

MidOcean Energy, an LNG company overseen by EIG, a leading investor in the global energy and infrastructure sectors, has announced a definitive agreement to acquire a 20 percent interest in Peru LNG (PLNG) from SK Earthon. This strategic acquisition marks a significant expansion of MidOcean’s LNG portfolio, aligning with its vision to build a global, diversified, and resilient energy portfolio.

PLNG, which owns and operates South America’s first LNG export plant in Pampa Melchorita, 170km south of Lima, Peru, is a cornerstone in the region’s energy infrastructure. With a processing capacity of 4.45 million metric tons per annum (mmtpa), a 408km-long pipeline, two storage tanks each with a capacity of 130,000 m3, a marine terminal, and a truck loading facility, PLNG stands as a critical asset for the monetization of Peru’s natural gas resources. Operated by Hunt Oil Company, PLNG is one of only two LNG production facilities in Latin America, playing a vital role in supplying LNG to residential, industrial customers, and CNG-powered vehicles across Peru.

De la Rey Venter, CEO of MidOcean Energy, expressed enthusiasm for the acquisition, stating, “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.” Venter praised PLNG for its sound long-term fundamentals, strong management team, and reliable operations, emphasizing MidOcean’s commitment to contributing to the venture’s long-term prosperity and its positive role in the Peruvian energy market.

The acquisition of SK Earthon’s stake in PLNG is part of MidOcean’s broader strategy to expand its presence in the global LNG market. The company is also finalizing the acquisition of Tokyo Gas’ interests in four Australian LNG projects for US$2.15 billion, expected to close by the end of February. This move further solidifies MidOcean’s position as a significant player in the international LNG sector.

The PLNG transaction, subject to customary closing conditions, represents a pivotal moment for MidOcean in its pursuit of a stronger foothold in the global LNG market. Morgan Stanley served as the exclusive financial advisor to MidOcean for this transaction, ensuring a smooth and strategic acquisition process.

This acquisition by MidOcean Energy is a testament to the growing importance of LNG as a key component of the global energy mix. It underscores the strategic value of assets like PLNG in facilitating the export of natural gas resources and supporting the energy needs of residential and industrial sectors in Peru and beyond. As MidOcean Energy broadens its LNG portfolio, it positions itself as a leading entity poised for growth in the evolving energy landscape.