LNG

New Fortress Energy Inc. the US developer of floating LNG production and import terminal and power projects, has signed agreements to provide gas-fired power and natural gas to the US Caribbean territory of Puerto Rico.

NFE said its Puerto Rican subsidiaries, NFE Power PR and NFEnergia, had entered into agreements with the US-based industrial and energy company, Weston Solutions, for the installation and operation of 150 megawatts of additional power generation at the Palo Seco Power Plant in Puerto Rico as well as the supply of natural gas.

“Weston has won a task order to supply the temporary power generation to support the overall mission of the island’s grid stabilization at the Palo Seco Power Plant under its US Army Corps of Engineers Omaha Rapid Disaster Infrastructure contract,” explained NFE.

“The 150 MW of dual-fuel generators are expected to enable maintenance and repair work of Puerto Rico’s power system and grid,” added the New York-based company.

Wes Edens, the Chairman and Chief Executive NFE, said he was pleased to partner with Weston and support this “critical mission” to improve grid stability in Puerto Rico.

Federal help

“The Federal Government is providing much-needed resources to Puerto Rico’s recovery and this project will help enable the transition to a cleaner, more affordable and reliable energy system,” stated Edens.

NFE on March 7 had reported increased annual revenues and net profits as its array of projects advanced.

The total annual revenues of NFE jumped almost 80 percent to $2.36 billion, up from $1.32Bln in 2021.

NFE’s annual net profits amounted to $185M compared with $93M in 2021.

The company also completed the Barcarena LNG import terminal in Brazil and expects to deliver first gas to the industrial customer, Norsk Hydro, later in 2023.

NFE said construction of its Fast LNG production units was progressing rapidly with the first FLNG unit expected to achieve mechanical completion in the Spring of 2023 and commence operations by mid-2023, explained NFE.

Ship venture

NFE also closed a $2Bln transaction to form a joint venture called Energos Infrastructure with US equity fund Apollo Asset Management in which NFE holds long-term charters for 10 LNG vessels.

Then in response to the European energy crisis, the Eems Energy Terminal in The Netherlands commenced operations in September 2022 utilizing NFE's “Energos Igloo” FSRU.

The company also finalized its partnership terms with state-backed energy company Petróleos Mexicanos (Pemex) to jointly develop the Lakach deepwater natural gas field in the Gulf of Mexico and to deploy a “Fast LNG” unit to that location.

New Fortress Energy Inc., the US developer of floating LNG production and import terminal projects, reported soaring annual revenues and net profits as its array of projects advanced.

New Fortress Energy Inc., the expanding LNG terminals, production, shipping and power assets owner, has closed the sale of a power plant in northeast Brazil and said the proceeds would go to LNG projects.

NFE said that along with its joint venture partner Ebrasil Energia the companies had concluded the sell off of the Centrais Elétricas de Sergipe (CELSE) Power Plant to Brazilian power company Eneva S.A.

Under the deal, NFE explained that Eneva had acquired 100 percent of the shares of Centrais Elétricas de Sergipe Participações SA, the NFE-Ebrasil joint venture that had held the equity interests of the CELSE Power Plant, and 100 percent of the shares of Centrais Elétricas Barra dos Coqueiros SA which owns 1.7 gigawatts of expansion rights adjacent to the CELSE Power Plant.

“The closing of this transaction further deleverages and simplifies our capital structure and marks another significant step toward our goal of an investment-grade credit rating,” said Wes Edens, Chairman and Chief Executive of NFE.

Redeploying capital

“We are pleased to redeploy these proceeds toward the capital needs of our ‘Fast LNG’ program and downstream LNG projects worldwide, internally funding our strategic growth initiatives to serve our customers’ needs amid a structurally short global LNG market,” stated Edens.

A portion of the proceeds from the sale was used to pay off the entire outstanding balance of the fully retire Standby Guarantee and Credit Facility Agreement with GE Capital EFS Financing Inc., while Eneva will assume the outstanding debt obligations of CELSE.

Energos Infrastructure, a joint venture established between New York-based asset management firm Apollo and NFE, will continue to operate the “Golar Nanook”, a floating storage and regasification unit (FSRU) that remains chartered to CELSE for use at the CELSE Power Plant for more than 20 years.

NFE’s latest priority activities are related to its “Fast LNG” program for LNG production in the Gulf of Mexico and at other locations.

The US company will produce the LNG using its “Fast LNG” platforms, some of which will be built at the new Kiewit Offshore Services shipyard near Corpus Christi in Texas.

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than floating liquefaction vessels.

Investor day

The US company is additionally involved in other FLNG ventures, including one offshore Louisiana and another offshore the Republic of Congo in West Africa.

NFE is planning an investor day at the Kiewit yard to explain its US Gulf Coast FLNG ambitions.

The company has chosen Kansas City-based LNG construction company Kiewit as its partner for the event planned for 10:00 am Central Time on November 22.

CEO Edens has said he expected to achieve mechanical completion of the first FLNG unit in March 2023 and deploy it by mid-year, with additional units to follow soon afterwards.

New Fortress Energy Inc., the expanding LNG terminals, production, shipping and power assets owner, plans to hold a floating LNG investor day at the Kiewit Offshore Services shipyard near Corpus Christi in Texas.

New Fortress has chosen the energy subsidiary of Omaha, Nebraska-based construction giant Kiewit as its partner for the building of FLNG units on the US Gulf Coast and the presentation event will be held from 10:00 am Central Time on November 22.

“Specializing in the fabrication and integration of offshore projects, the 555-acre KOS facility is home to NFE’s ‘Fast LNG’ program and the ongoing conversion of marine infrastructure into floating liquefaction units,” explained NFE in a filing with the Securities and Exchange Commission.

Wes Edens, Chairman and Chief Executive of NFE, said he looked forward to hosting the event at the Texas facility.

“We expect to achieve mechanical completion of our first FLNG unit in March 2023 and deploy FLNG 1 into operation by mid-year, with additional units to follow soon thereafter,” explained Edens.

Skilled workforce

“Utilizing a highly skilled workforce on the US Gulf Coast, we have developed an efficient and repeatable construction process - essentially an FLNG factory - that substantially reduces the cost and time to build incremental liquefaction capacity to meet the urgent needs of the global energy markets,” declared the NFE CEO.

New York-based NFE also recently signed an agreement with Mexico’s national energy company Petróleos Mexicanos (Pemex) to form a strategic partnership including a floating LNG project in the Gulf of Mexico.

The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.

The US company will produce the LNG using its “Fast LNG” vessels to be built at the Kiewit yard.

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a lower cost and faster deployment schedules.

Louisiana FLNG

The US company is additionally involved in other FLNG ventures, including one offshore the US Gulf state of Louisiana and another offshore the Republic of Congo in West Africa.

NFE is additionally advancing LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean.

NFE also said recently that it had entered a joint venture valued at $2 billion with New York-based asset management firm Apollo relating to floating storage and regasification units (FSRUs) in the LNG sector and this opened up a long-term financing arrangement.

The July 2022 deal involves NFE selling LNG infrastructure vessels it owns to the newly formed joint company whereby 80 percent would be held by Apollo funds and 20 percent by NFE.

That transaction would create a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE's LNG downstream operations and development activities, as well as Apollo's leading investment and maritime experience.

LNG FSRUs

Outwith the Kiewit Offshore Services shipyard plans NFE has an existing fleet that came from its acquisition in 2021 of Golar LNG Partners and its assorted FSRUs and LNG carriers.

The 11-vessel portfolio of the venture consists of six FSRUs, two conventional LNG carriers and three floating storage units (FSUs).

As part of the Apollo transaction, NFE has agreed to charter 10 of the 11 of the vessels from the Apollo-controlled venture for a period of up to 20 years.

Apollo is a high-growth, global alternative asset management business focusing on select investment strategies.

New Fortress Energy (NFE) and Apollo have completed their joint venture, Energos Infrastructure to establish a platform, which now owns and operates 11 LNG vessels.

New Fortress Energy Inc, the expanding LNG terminals, production, shipping and power assets owner, has entered a joint venture valued at $2 billion with New York-based asset management firm Apollo relating to floating storage and regasification units (FSRUs) in the LNG sector and opening up a long-term financing arrangement.

New Fortress signed the deal to sell LNG infrastructure vessels it owns to the newly formed joint company whereby 80 percent would be held by Apollo funds and 20 percent by NFE.

“This transaction will create a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE's LNG downstream operations and development activities, as well as Apollo's leading investment and maritime experience,” said a joint statement.

NFE’s existing fleet came from its acquisition in 2021 of Golar LNG Partners and its assorted FSRUs and LNG carriers.

“The platform provides critical infrastructure for the delivery, storage, and regasification of LNG to power countries around the world, which can reduce their reliance on oil and coal to lower carbon emissions,” it added.

The 11-vessel portfolio of the venture consists of six FSRUs, two conventional LNG carriers and three floating storage units (FSUs).

Charters

“The total implied enterprise value of the transaction is about $2Bln and NFE will receive around $1.1Bln in proceeds after accounting for NFE's share of the venture and paydown of existing debt,” the companies explained.

As part of the transaction, NFE has agreed to charter 10 of the 11 of the vessels from the Apollo-controlled venture for a period of up to 20 years commencing either upon close of the transaction or upon expiration of the existing third-party charter agreements of the vessels.

The venture will also seek “growth opportunities” in support of both NFE and third parties to support the energy transition and bolster energy security globally.

Apollo is a high-growth, global alternative asset management business focusing on select investment strategies.

“Together with Apollo, we are creating a leading LNG marine infrastructure platform to help accelerate the energy transition while freeing up capital to continue to invest into our ‘Fast LNG’ and downstream LNG projects worldwide,” declared Wes Edens. Chairman and Chief Executive of NFE.

“We are pleased to be partnering with Apollo in creating a maritime infrastructure company that will help support NFE's growing LNG infrastructure needs going forward,” he added.

Apollo Partner Brad Fierstein said he was pleased to help further the initiatives of NFE in the LNG business through long-term investment.

“This is a high-quality portfolio that increases energy security around the world, accelerates decarbonization efforts, and facilitates LNG use which is cleaner and more affordable than diesel,” stated Fierstein.

NFE and Apollo said they expected to transaction to be finalised in the third quarter of 2022.

“Transaction proceeds are expected to be utilized to fund NFE's FLNG projects. as well as for ongoing downstream infrastructure and general corporate purposes,” the statement added.

Pemex deal

NFE recently signed an agreement with Mexico’s national energy company Petróleos Mexicanos (Pemex) to form a strategic partnership including a floating LNG project in the Gulf of Mexico.

The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.

The US company will produce the LNG using its own “Fast LNG” design offshore.

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than floating liquefaction vessels.

The US company is additionally involved in other FLNG ventures, including one offshore the US Gulf state of Louisiana and another offshore the Republic of Congo in West Africa.

NFE is also advancing LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean and in Sri Lanka in Asia.