Aramco to enter global LNG business by acquiring stake in MidOcean Energy

September 29, 2023 (MLN): Aramco, one of the world’s leading integrated energy and chemicals companies, has signed definitive agreements to acquire a strategic minority stake in MidOcean Energy for $500 million, the press statement issued by the company on Thursday. 

MidOcean Energy is a liquefied natural gas (LNG) company formed and managed by EIG, a leading institutional investor in the global energy and infrastructure sectors.

MidOcean Energy is currently in the process of acquiring interests in four Australian LNG projects, with a growth strategy to create a diversified global LNG business. The strategic partnership with MidOcean Energy marks Aramco’s first international investment in LNG.

The agreement builds on the relationship between Aramco and EIG, which was part of a consortium that acquired a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, in 2021.

Completion of the transaction is subject to closing conditions which include regulatory approvals. Aramco also has the option to increase its shareholding and associated rights in MidOcean Energy in the future.

“We are pleased to be strengthening our strategic partnership with EIG through this acquisition, which marks Aramco’s first international investment in LNG. We anticipate strong demand-led growth for LNG as the world continues on its energy transition journey, with gas being a vital fuel and feedstock in various industries, Amin H. Nasser, Aramco President & CEO of Aramco said.

"We believe that gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy,” he added.

De la Rey Venter, MidOcean Energy CEO, said that It is an honour for MidOcean Energy to have Aramco as a key shareholder and strategic partner.

"We share the conviction that LNG is an integral enabler of the global energy transition, and we believe that the global LNG industry has strong fundamentals for many decades to come," he noted.

Synergistic partnerships are core to how MidOcean Energy will do business, grow and thrive.

He further added, "In Aramco, we have a partner that has long-term thinking in its DNA and an unwavering commitment to enduring collaborations. We look forward to pursuing many new opportunities together.”

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