MidOcean Energy to Purchase 20% Stake in Peru LNG from SK Earthon

EIG-owned MidOcean Energy has entered into a definitive agreement with SK Earthon to acquire SK’s 20% interest in the Peru LNG (PLNG) export terminal. PLNG owns and operates the LNG export plant located in Pampa Melchorita, Peru, approximately 170 km south of Lima.

PLNG’s assets consist of a natural gas liquefaction plant with 4.45 mmtpa processing capacity, a 408 km-long pipeline with 1,290 mmcf/d capacity, two 130,000 m³ storage tanks, a 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 two LNG production facilities in Latin America. MidOcean Energy is also in the process of completing an acquisition of Tokyo Gas’ interests in four Australian LNG projects for $2.15 billion, which is expected to close at the end of February.

“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,” said De la Rey Venter, CEO, MidOcean Energy. “PLNG is an asset we know, with sound long-term fundamentals, a strong management team and reliable operations. 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.”

PLNG serves as a strategic asset for the Peruvian natural gas sector, providing a route to monetize its natural gas resources via export. The export terminal also plays a role in supplying LNG to residential and industrial customers, as well as CNG-powered vehicles in various regions across the country. The natural gas sector is a primary aspect of the Peruvian energy mix, offering reliable electricity generation for the industrial sector as well as various applications across the residential sector.