(Bloomberg) -- Liquefied natural gas company MidOcean, which is backed by private equity fund EIG, expanded its stake in Peru LNG, the second-largest Latin American exporter of the fuel after Trinidad and Tobago.
The deal announced Monday expands MidOcean’s stake in Peru as the company looks to shore up its position in LNG, alongside Saudi oil giant Aramco, which invested in MidOcean last year. Export plant Peru LNG has a 4.5-million-metric-ton-a-year capacity. The move comes at a time when the liquefied natural gas market is rapidly expanding, led by the US and Qatar as countries in Europe and Asia look to decarbonize and move away from other fuels.
Pending the transaction closing, MidOcean will increase its stake in Peru LNG to 35%, up from 20% announced in February. Dallas-based Hunt Oil will remain operator of Peru LNG and keep a 35% share in the facility. MidOcean also has shares in a portfolio of Australian LNG projects. Saudi Aramco, which is funding the latest Peru transaction, is also increasing its interest in MidOcean by 49%, according to a statement from MidOcean. The value of the Peru transaction was not disclosed.
MidOcean was among the companies initially interested in Tellurian’s Driftwood LNG, which was later acquired by Woodside Energy Group Ltd.
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