Integrated energy and chemicals companies, Aramco on Thursdays, has signed a definitive agreement to acquire minority stake of a liquefied natural gas (LNG) company, MidOcean, a subsidiary company of private energy Investment Company, EIG global energy partner. The deal is worth of $500 million.
Dubai-based state owned, Aramco’s partnership with MidOcean Energy marks its first international investment in LNG.
The US-based MidOcean Energy is in the process of acquiring interests in four Australian LNG projects to diversify in global LNG business.
This newly built agreement is based on the relationship between Aramco and EIG, which was part of a group that acquired a 49% stake in a subsidiary of Aramco, Aramco Oil Pipelines Company, in the year 2021.
The finalisation of the deal is subject to closing conditions which include regulatory approvals, additionally, Aramco also has the option to increase its shareholding and associated rights in MidOcean Energy in the future.
Amin H. Nasser, CEO Aramco said, “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.”
