DUBAI, Sept 16 (Askume) – Saudi Aramco will raise its stake in liquefied natural gas company MidOcean Energy to 49% and support its acquisition of Peruvian LNG15 from Hunt Petroleum, with MidOcean and Hunt providing funding of % of the new shares on Monday.
The Saudi oil giant agreed to acquire a minority stake in MidOcean from EIG for $500 million last year, its first foray into overseas LNG, without disclosing the size of its stake.
Aramco, the world’s largest oil exporter, is seeking to strengthen its position in the LNG market, which is expected to grow 50% globally by 2030, especially in the United States, where LNG production capacity will nearly double over the next four years.
MidOcean did not disclose how much it paid for its stake in Peruvian liquefied natural gas (PLNG), nor the value of Saudi Aramco’s money.
Saudi Aramco declined to comment beyond the statement.
Representatives for EIG did not immediately respond to an emailed request for comment.
“We are focused on positioning ourselves for future PLNG projects, and the opportunity to bring on MidOcean as a partner is an excellent strategic fit to achieve this goal,” Hunt CEO Mark Gunning said in a statement.
Hunter declined to comment beyond the statement.
Washington, D.C.-based MidOcean acquired a 20% stake in PLNG in April for $256.5 million.
Following completion of the transaction, MidOcean and Hunt will each hold 35% of PLNG shares, MidOcean said in a statement.
MidOcean said: “Aramco’s further investment in MidOcean will strengthen the position of MidOcean and Aramco in the global LNG market and provide both parties with the opportunity to further participate in South America’s only LNG export project.”
Aramco will indirectly hold a 17.2% stake in PLNG. Hunt also owns a 25.2% stake in the Camisea upstream project in Peru, where it has invested since 2000, MidOcean said.
PLNG’s assets include a 4.45 million tonnes per annum (MTPA) natural gas liquefaction plant.
Aramco Chief Executive Amin Nasser said earlier this year that his company could partner with MidOcean to invest in liquefied natural gas projects outside Australia.
Aramco’s interest in MidOcean deepens its ties with EIG, which led a consortium thatIn 2021 acquired a 49% stake in Aramco’s oil pipeline business for $12.4 billion .
MidOcean announced in March that it had completed the acquisition of Australian LNG from Japan’s Tokyo Gas.
