In a strategic move to solidify its position in the liquefied natural gas (LNG) market, Aramco, a prominent global integrated energy and chemicals company, has announced a definitive agreement to acquire a significant minority stake in MidOcean Energy for $500 million.
MidOcean Energy, a leading LNG company managed by EIG, a top-tier institutional investor in the global energy and infrastructure sectors, is currently actively involved in acquiring interests in four Australian LNG projects as part of its expansive growth strategy to establish a diversified global LNG business.
This landmark agreement represents Aramco’s inaugural international investment in LNG, broadening its reach beyond its conventional energy ventures. The partnership builds upon the existing relationship between Aramco and EIG, which saw the consortium, including EIG, acquire a 49 percent stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, in 2021.
Completion of this substantial transaction is contingent upon fulfilling necessary closing conditions, including regulatory approvals. Additionally, Aramco retains the option to further enhance its shareholding and associated rights in MidOcean Energy in the future.
Amin H. Nasser, President & CEO of Aramco, expressed his enthusiasm about the strengthening partnership with EIG through this acquisition, emphasizing the company’s anticipation of robust demand-driven growth for LNG. Nasir K. Al-Naimi, Aramco Upstream President, underscored the strategic significance of this move, positioning Aramco to emerge as a major global player in the LNG market.
Blair Thomas, Chairman and CEO of EIG, emphasized their commitment to energy transition and the pivotal role of LNG in achieving a balanced transition towards decarbonization and energy security. He acknowledged the timing being opportune for a company like MidOcean Energy to drive positive change in the LNG industry.
De la Rey Venter, CEO of MidOcean Energy, acknowledged Aramco as a crucial shareholder and strategic ally, highlighting their shared conviction regarding the pivotal role of LNG in the global energy transition. He also emphasized the significance of synergistic partnerships for MidOcean Energy’s growth and expressed eagerness in exploring new opportunities in collaboration with Aramco.
This strategic investment signifies a major leap for both Aramco and MidOcean Energy, aligning with the trajectory of the global LNG market and emphasizing the pivotal role LNG is set to play in the ongoing energy transition towards a more sustainable future.