MidOcean Energy Acquires SK earthon’s Stake in Peru LNG, Becoming Major Player in South American LNG Market
MidOcean Energy, an LNG company managed by investment firm EIG, has finalized the purchase of Korea-based SK earthon’s interest in Peru LNG (PLNG). PLNG, South America’s inaugural LNG export facility, now boasts MidOcean as a significant stakeholder. Morgan Stanley served as MidOcean’s exclusive financial advisor for the transaction, with legal counsel provided by Latham & Watkins.
Peru LNG boasts a natural gas liquefaction plant with an impressive processing capacity of 4.45 million tonnes per annum. Additionally, the facility includes a 408-kilometer pipeline, two 130,000 cubic meter storage tanks, a truck loading facility, and a 1.4-kilometer terminal. Operations at Peru LNG are managed by Hunt Oil Company, with ownership shared among Hunt (50%), Shell (20%), MidOcean (20%), and Marubeni Corporation (10%).
Situated in Pampa Melchorita, approximately 170 kilometers south of Lima, Peru’s capital, the plant stands as one of only two LNG production facilities in Latin America. The port facility is equipped to accommodate tankers carrying between 90,000 and 174,200 cubic meters of LNG.
De la Rey Venter, CEO of MidOcean Energy, emphasized PLNG’s pivotal role in the global LNG market, particularly as the sole LNG export facility in South America. He highlighted PLNG’s significance in supplying gas and LNG to customers in Peru, underlining MidOcean’s strategic investment in the region’s energy landscape.
