EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline

(P&GJ) — MidOcean Energy, an LNG company formed and managed by EIG, has entered into a definitive agreement with SK Earthon to acquire SK’s 20% interest in Peru LNG (PLNG).

PLNG owns and operates the first LNG export plant in South America, located in Pampa Melchorita, 170 km (106 miles) south of Lima, Peru.

PLNG’s assets comprise a natural gas liquefaction plant with 4.45 MTPA processing capacity, a fully owned 408 km (254-mile) pipeline with 1,290 MMcf/d capacity, two 130,000 m3 storage tanks, a fully-owned 1.4 km-long marine terminal and a truck loading facility with capacity of up to 19.2 MMcf/d. PLNG is operated by Hunt Oil Company and is one of only two LNG production facilities in Latin America.

The company said it believes PLNG is a highly strategic asset to the Peruvian natural gas sector, providing a key route to monetize its natural gas resources via export. It also plays an important role in supplying LNG to residential and industrial customers as well as CNG-powered vehicles in various cities across the country. The natural gas sector has become an increasingly important part of the Peruvian energy mix, underpinning electricity generation for the industrial sector as well as various applications across the residential sector.

“PLNG is an asset we know and admire, with sound long-term fundamentals, a strong management team and reliable operations,” De la Rey Venter, MidOcean Energy CEO, said. “We look forward to joining the PLNG partnership and contributing to the long-term prosperity of that venture and its work toward being a positive role in the Peruvian energy market.”

MidOcean also is in the process of completing its acquisition of Tokyo Gas’ interests in four Australian LNG projects for $2.15 billion, which is targeted to close at the end of February.

The PLNG transaction is subject to customary closing conditions.

Morgan Stanley acted as exclusive financial advisor to MidOcean on the transaction.

Related News


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}