New partner joins South America’s inaugural LNG export facility

Home Fossil Energy New partner joins South America’s inaugural LNG export facility

April 24, 2024,
by

Dragana Nikše

MidOcean Energy, a liquefied natural gas (LNG) company formed and managed by investment company EIG, has completed the acquisition of Korea-based SK earthon’s interest in Peru LNG (PLNG).

Illustration; Source: Peru LNG

After it was announced in February that EIG-managed MidOcean Energy would acquire SK earthon’s 20% stake in PLNG, the owner and operator of the first LNG export facility in South America, the acquisition process was completed in April 2024. Morgan Stanley acted as the exclusive financial advisor to MidOcean, and Latham & Watkins as its legal advisor.

According to PLNG, its assets comprise a natural gas liquefaction plant with 4.45 mmtp/y processing capacity, a fully-owned 408-kilometer-long pipeline with 1,290 mmcf/d capacity, two 130,000 cubic meters storage tanks, a fully-owned 1.4 kilometer-long marine terminal, and a truck loading facility with a capacity of up to 19.2 mmcf/d.

De la Rey Venter, MidOcean Energy’s CEO, remarked: “The completion of this investment is an important milestone in our efforts to create a global, diversified and resilient portfolio of LNG assets. As the only LNG export facility in South America, PLNG is uniquely positioned in the global marketplace. PLNG also plays an important role in providing gas and LNG to customers in Peru. We look forward to a strong partnership with the PLNG co-venturers and our work towards sustaining PLNG’s positive impact for many years to come.”

Hunt Oil Company handles the pipeline and plant operations at Peru LNG, which is owned by Hunt (50%), Shell (20%), MidOcean (20%), and Marubeni Corporation (10%). The plant is said to be one of only two LNG production facilities in Latin America, located in Pampa Melchorita, 170 kilometers south of Peru’s capital, Lima. The port facility can handle methane tankers carrying 90,000–174,200 cubic meters of LNG, with a full-load displacement of 118,388 tons and a draught of up to 12 meters.

MidOcean has recently been on the dispensing and receiving end of several transactions. The firm completed the acquisition of Tokyo Gas’ interests in a portfolio of Australian-integrated LNG projects while Mitsubishi Corporation made a strategic investment in the company along with Aramco, which signed definitive agreements to acquire a minority stake, marking the Saudi giant’s first international investment in LNG.