EIG’s MidOcean buys Peru LNG stake from SK

MidOcean Energy, the LNG unit of US-based energy investor EIG, has purchased a stake in LNG terminal operator Peru LNG from a unit of South Korean conglomerate SK.

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

The firm said it will use the proceeds to fund future growth businesses.

SK Innovation holds a 20 percent stake in Peru LNG, the same as LNG giant Shell that also offtakes all of the volumes from the 4.4 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.

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.

Peru LNG said that the main destinations in 2023 were United Kingdom and South Korea, and also Japan, China, Spain, France, Netherlands, and Canada.

It expects to load 60 vessels in 2024.

MidOcean building LNG portfolio

EIG also confirmed later on Thursday in a separate statement that MidOcean has entered into a definitive agreement with SK Earthon to acquire SK’s 20 percent interest in Peru LNG.

The transaction remains subject to customary closing conditions.

“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,” De la Rey Venter, MidOcean CEO, said.

“PLNG is an asset we know and admire, with sound long-term fundamentals, a strong management team and reliable operations,” he said.

MidOcean is working to significantly expand its business and last year energy behemoth Saudi Aramco agreed to buy a minority stake in the firm.

Back in 2022, MidOcean entered into a definitive agreement with Japan’s Tokyo Gas to buy the latter’s interests in a portfolio of four Australian integrated LNG projects.

These include Chevron’s Gorgon LNG, the Inpex-led Ichthys LNG, Woodside’s Pluto LNG, and Shell’s Queensland Curtis LNG project.

Inpex recently said it has exercised its preemptive rights to acquire Tokyo Gas’s participating interest in Ichthys LNG.

EIG said in the statement that MidOcean is in the process of completing its acquisition of Tokyo Gas’ interests in four Australian LNG projects, which is targeted to close at the end of February.

Besides this deal, shareholders of Australia’s Origin rejected in December a takeover bid by a consortium consisting of Canada’s Brookfield Asset Management and MidOcean.

Under this deal, MidOcean would have owned Origin’s integrated gas segment including its upstream gas interests and the 27.5 percent stake in Australia Pacific LNG (APLNG).

(Updated with a statement by EIG.)

Most Popular

Cheniere to start site preparation for two more Corpus Christi LNG trains

US LNG exporting giant Cheniere is seeking approval from the US FERC to start site preparation activities for two more midscale trains at its Corpus Christi LNG plant in Texas.

Amigo LNG, Sahara seal 20-year SPA

Amigo LNG, a unit of LNG Alliance, has signed a 20-year sales and purchase agreement with Sahara Group to supply the latter with liquefied natural gas from its planned 7.8 mtpa LNG export plant in Mexico.

Woodside names Sarah Bairstow as Louisiana LNG head

Australian LNG player Woodside has appointed Sarah Bairstow to lead its Louisiana LNG project.

More News Like This

Venture Global launches Calcasieu Pass LNG commercial ops

US LNG exporter Venture Global LNG has launched commercial operations at its Calcasieu Pass LNG terminal in Louisiana, some 68 months from its final investment decision and 38 months after production start.

Energy Transfer seeks FERC extension for Lake Charles LNG export terminal

Texas-based Energy Transfer is seeking an extension of time from the US FERC to complete and place into service its planned Lake Charles LNG export facility in Louisiana.

YPF expects more supermajors to join Argentina LNG project, CEO says

Argentina’s state-owned oil and gas company YPF expects more supermajors to become equity partners in the planned Argentina LNG project following a deal with Shell, according to CEO Horacio Marin.

Energy Transfer, EIG’s MidOcean to jointly develop Lake Charles LNG project

MidOcean Energy, the LNG unit of US-based energy investor EIG, has signed a heads of agreement with Energy Transfer to jointly develop the latter's Lake Charles LNG export facility in Louisiana.