By:Oilandgasmiddleeast

Saudi Aramco is set to increase its stake in liquefied natural gas (LNG) company MidOcean Energy to 49% and will finance the acquisition of a 15% stake in Peru LNG from Hunt Oil Company, according to reports.

Last year, Aramco made its first move into the international LNG market by acquiring a minority stake in MidOcean from EIG for $500 million, though the size of the stake was not disclosed at the time.

With the global LNG market expected to grow by 50% by 2030, Aramco aims to strengthen its presence, particularly in the U.S., where LNG capacity is projected to nearly double in the next four years.

MidOcean did not reveal the purchase price for the Peru LNG stake or the value of Aramco’s funding. Once the deal is finalised, MidOcean and Hunt will each hold a 35% stake in Peru LNG, according to the statement.

Through this deal, Aramco will hold an indirect 17.2% stake in Peru LNG. Hunt Oil will retain a 25.2% share in Peru’s Camisea upstream project, where it has been an investor since 2000.

In February 2024, MidOcean Energy signed a definitive agreement with SK Earthon to acquire its 20% stake in Peru LNG (PLNG).

PLNG owns and operates South America’s first LNG export plant, located in Pampa Melchorita, about 170 kilometers south of Lima, Peru.

According to MidOcean Energy, PLNG’s assets include a natural gas liquefaction plant with a processing capacity of 4.45 million metric tons per annum (mmtpa), a 408-kilometer pipeline with a capacity of 1,290 million cubic feet per day (mmcf/d), two 130,000 cubic meter storage tanks, a 1.4-kilometer marine terminal, and a truck loading facility capable of handling up to 19.2 mmcf/d.

The facility, operated by Hunt Oil Company, is one of only two LNG production plants in Latin America.