MidOcean Energy acquires stake in Peruvian LNG facility
MidOcean Energy said February 8 it had entered into a definitive agreement with SK Earthon to acquire the Korean company’s 20% interest in Peru LNG (PLNG), one of only two LNG production facilities in Latin America.
PLNG is operated by Hunt Oil and is the first LNG export facility in South America. Located in Pampa Melchorita, 170 km south of Lima, it produces 4.45mn tonnes/year of LNG from natural gas delivered through a 408-km, 1.29bn ft3/day pipeline. The complex includes two 130,000 m3 storage tanks, marine terminal and a truck loading facility with a capacity of up to 19.2mn ft3/day.
The PLNG transaction remains subject to customary closing conditions.
MidOcean characterised the PLNG facility as a “highly-strategic” asset within the Peruvian natural gas sector, providing a key route to monetising the country’s natural gas resources. It also supplies LNG to residential and industrial customers and to CNG-powered vehicles across the country.
“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,” MidOcean CEO De la Rey Venter said. “PLNG is an asset we know and admire, with sound long-term fundamentals, a strong management team and reliable operations.”
MidOcean is also in the process of completing its previously-announced $2.15bn acquisition from Tokyo Gas of interests in four Australian LNG projects, a transaction expected to close at the end of February. Originally expected to close in the first half of 2023, the transaction was delayed when Inpex exercised its preemptive right to acquire Tokyo Gas’ 1.575% interest in Ichthys LNG project, one of the four included in MidOcean’s acquisition.