MidOcean Energy’s acquisition of a stake in Peru LNG was awarded Oil & Gas Acquisition of the Year in Latin America, with judges saying it was the submission that stood out the most.

Judges praised the transaction, saying it was a strategic acquisition allowing the company entrance into the Peruvian natural gas market.

EIG-backed MidOcean in February (2024) agreed to acquire a 20% stake in Peru LNG from SK Earthon. The deal completed in April (2024).

Peru LNG is operated by Hunt Oil Company and one of 2 LNG production facilities in Latin America.

Its assets comprise:

• the first LNG export plant in South America, in Pampa Melchorita – 170km South of Lima
• a natural gas liquefaction plant with 4.45mmtpa processing capacity
• a fully-owned 408km-long pipeline with 1,290 mmcf/d capacity
• 2 x 130,000 m³ storage tanks
• a 1.4km marine terminal
• a truck loading facility with capacity up to 19.2 mmcf/d

The EIG subsidiary said the assets play an important role in supplying LNG to residential and industrial customers as well as to CNG-powered vehicles 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.

Judges said it the acquisition was notable as it reflects another step in MidOcean’s strategy to create a global, diversified and resilient LNG portfolio.

Adviser to MidOcean:

• Morgan Stanley – financial
• Latham & Watkins – legal
• Hernandez & Cia. – legal