SK Earthon sells Peru LNG stake for $257 mn to MidOcean

SK Earthon Co., the resources development subsidiary of South Korea’s top energy company SK Innovation Co., sold a stake in Peru LNG Co. LLC for $256.5 million to MidOcean Energy to secure money for new growth businesses.

SK Earthon said on Thursday it signed a deal to sell its entire 20% stake in Peru LNG to MidOcean, a liquefied natural gas unit of US-based private equity firm EIG Global Equity Partners specializing in the energy and infrastructure sector.

The South Korean company said it plans to use the proceeds for investments in its new growth engines, without elaborating further.

“The successful sale of Peru LNG is expected to further boost future growth businesses,” said SK Earthon CEO and President Myeong Seong in a statement.

Peru LNG, shareholders in which include global energy majors such as Shell plc, Hunt Energy and Marubeni Corp., has been operating an LNG plant since 2010.

MidOcean has been expanding its LNG business in recent years. In 2022, it agreed to acquire Tokyo Gas Co.’s LNG projects in Australia for $2.15 billion.

The world’s top oil company Saudi Arabian Oil Co. (Aramco) bought a minority stake in MidOcean in a $500 million deal to tap into the global LNG business.

Write to Sang Hoon Sung at uphoon@hankyung.com
 

Jongwoo Cheon edited this article.