Saudi Aramco will increase its stake in liquefied natural gas firm MidOcean Energy to 49 percent and fund the firm’s acquisition of a new 15 percent stake in Peru LNG (PLNG) from Hunt Oil Company.
In a recent statement, MidOcean Energy, an LNG company formed and managed by EIG, and Hunt Oil Company announced that they have entered into a definitive agreement whereby MidOcean will acquire an additional 15 percent interest in Peru LNG from Hunt. Following the closing of the transaction, MidOcean’s interest in Peru LNG will increase from 20 percent to 35 percent.
“Aramco played a pivotal role in the transaction, including undertaking key technical and commercial due diligence as well as engaging with key stakeholders for transaction approval,” noted the statement.
South America expansion
Aramco will fully fund the transaction, which will increase its interest in MidOcean. The Saudi oil giant’s investment in MidOcean strengthens both firms’ 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 Peru LNG will reach 17.2 percent. In addition to EIG and Aramco, Mitsubishi Corporation has invested in MidOcean, among other blue-chip investors. Hunt’s interest in Peru LNG will, therefore, decrease from 50 percent to 35 percent. However, it will remain the operator of Peru LNG following the transaction.
“We are focused on positioning the PLNG project for the future, and the opportunity to bring in MidOcean as a partner was a great strategic fit to make that happen,” stated Mark Gunnin, Hunt’s CEO.
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South America’s only LNG export facility
Peru LNG owns and operates the only LNG export facility in South America, which is located in Pampa Melchorita, 170 kilometers south of Lima, Peru.
The company’s assets consist of a natural gas liquefaction plant with 4.45 mmtpa processing capacity, a fully-owned 408 kilometer pipeline with 1,290 mmcf/d capacity, two 130,000 m3 storage tanks, a fully-owned 1.4 kilometer marine terminal, and a truck loading facility with a capacity of up to 19.2 mmcf/d.
Hunt operates Peru LNG which is one of only two LNG production facilities in Latin America.
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