EIG’s MidOcean wraps up stake purchase in Peru LNG

MidOcean Energy, the LNG unit of US-based energy investor EIG, has completed its previously announced purchase of a 20 percent stake in LNG terminal operator Peru LNG from a unit of South Korean conglomerate SK.

SK Earthon, a unit of SK Innovation, said in February it has agreed to sell its share in Peru LNG to MidOcean for about $256.5 million.

Following the completion of the deal, MidOcean now holds a 20 percent stake in Peru LNG, the same as LNG giant Shell that also offtakes all of the volumes from the 4.45 mtpa LNG plant at Pampa Melchorita.

US-based Hunt Oil holds a 50 percent operating stake in the LNG plant, while Japan’s Marubeni has a 10 percent stake in Peru LNG.

Besides liquefaction facilities, Peru LNG’s assists include a 408km-long pipeline with 1,290 mmcf/d capacity, two 130,000 cbm storage tanks, a 1.4 km-long marine terminal, and a truck loading facility with capacity of up to 19.2 mmcf/d.

The facility is one of only two LNG production facilities in Latin America, located in Pampa Melchorita, 170km south of Lima.

Peru LNG has increased its exports last year compared to the year before, and it also expects to boost the number of shipments in 2024.

The terminal loaded 55 vessels in 2023, compared to 51 vessels in 2022, and it expects to load 60 vessels in 2024.

The completion of this transaction follows MidOcean’s recent announcement of a strategic investment by Japan’s Mitsubishi Corporation and the completion of its acquisition of Tokyo Gas Co’s interests in a portfolio of Australian integrated LNG projects.

De la Rey Venter, MidOcean’s CEO said 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,” he said.

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