Aramco steps into global LNG market with stake in MidOcean Energy

Aramco steps into global LNG market with stake in MidOcean Energy

Home Clean Fuel Aramco steps into global LNG market with stake in MidOcean Energy

September 28, 2023,
by

Aida Čučuk

Energy major Aramco has signed definitive agreements to acquire a strategic minority stake in MidOcean Energy, an LNG company formed and managed by investment company EIG, for $500 million.

Courtesy of Aramco

Completion of the transaction is subject to closing conditions which include regulatory approvals, with Aramco having the option to increase its shareholding and associated rights in the company in the future.

The deal marks the major’s first international investment in LNG, and according to Aramco, 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.

To note, 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.

Amin H. Nasser, Aramco President & CEO, stated: “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. We believe that gas will be important in meeting the world’s rising need for secure, accessible and more sustainable energy.”

De la Rey Venter, MidOcean Energy CEO, noted how it is an honor for MidOcean Energy to have Aramco as a key shareholder and strategic partner, adding: “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.”

Blair Thomas, EIG Chairman and CEO, commented as well: “Energy transition informs every investment decision we make, and we believe LNG has a key role to play in enabling an orderly transition that balances society’s twin goals of decarbonization and energy security. Concurrent with that, we believe the LNG industry is ripe for change and there is a role for a nimble, pure-play company like MidOcean Energy. While our initial focus is on the announced transactions in Australia, we believe the opportunity set is global. We are excited to expand our existing partnership with Aramco to include this important initiative.”

To remind, just recently, the CEO of Aramco, called upon world leaders and energy players to devise concrete transition steps in a bid to ensure a just transition and avert a potential energy crisis, as a result of a premature phaseout of fossil fuels.

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