MidOcean Energy Acquires 20% Stake in Peru's First LNG Export Facility

(P&GJ) — MidOcean Energy has finalized its acquisition of SK earthon’s 20% interest in Peru LNG (PLNG), marking a significant development in the global LNG market. PLNG, situated in Pampa Melchorita, 170 km (106 miles) south of Lima, stands as the inaugural LNG export facility in South America, operated by Hunt Oil Company.

PLNG's assets encompass a natural gas liquefaction plant boasting a processing capacity of 4.45 MTPA, along with a fully-owned 254-mile (408 km) pipeline capable of handling 1,290 MMcf/d. Additionally, the facility features two 130,000 m3 storage tanks, a fully-owned 1.4 km-long marine terminal, and a truck loading facility capable of handling up to 19.2 MMcf/d.

“The completion of this investment is an important milestone in our efforts to create a global, diversified and resilient portfolio of LNG assets,” De la Rey Venter, MidOcean Energy’s CEO, said. “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.”

This acquisition aligns with MidOcean's broader strategy of establishing a diversified and resilient portfolio of LNG assets. It follows closely on the heels of the company's strategic investment by Mitsubishi Corporation and its acquisition of Tokyo Gas Co. Ltd.’s interests in a portfolio of Australian integrated LNG projects.

Morgan Stanley provided exclusive financial advisory services to MidOcean for the transaction, while legal counsel was provided by Latham & Watkins.

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