LNG

Golar LNG Ltd said it sold about one third of the 18.6 million New Fortress Energy Inc. shares received upon completion of the sale of Hygo Energy Transition to NFE in April 2021.

The sale is expected to raise net proceeds of approximately $250 million which Golar said it would seek to deploy to floating LNG growth projects.

“Golar is excited about new FLNG growth prospects, including those being pursued by NFE and plans to remain a supportive shareholder for the foreseeable future,” stated Golar Chief Executive Karl Fredrik Staubo in regards to the sale.

Golar LNG reorganized its business following the sale of the Hygo Energy Transition stake and Golar LNG Partners to New York-based LNG-to-power firm NFE.

Golar finalized the sale in 2021 of its 50 percent stake in Hygo Energy Transition, formerly known as Golar Power, and its 32 percent interest in its US affiliate Golar LNG Partners, both to NFE.

Hygo Energy itself was a joint venture set up between Golar and US private equity firm Stonepeak Infrastructure Partners.

Golar LNG shares had plunged more than 30 percent, on 26th of September 2020, when Hygo Energy was caught up briefly in a Brazilian corruption investigation.

Previous crisis

Golar’s stock fell after news emerged of Hygo Energy Chief Executive Eduardo Antonello being involved in a probe into certain activities before he had joined Hygo Energy. Antonello later stepped down from Hygo Energy over the controversy.

The corporate crisis came at a time when Hygo Energy was expanding its LNG-for-power projects in northeast Brazil. The business was subsequently purchased by NFE, led by its high-profile CEO Wes Edens.

The Golar assets sales deals involved NFE taking over Golar’s US unit, Golar LNG Partners. and the Hygo Energy stake.

The transactions were valued at the time at more than $5 billion in cash and assets and turned NFE into the leading gas-to-power company in Brazil while providing LNG shipping assets and experience.

NFE already had projects in Jamaica and Puerto Rico and later started LNG import ventures in Mexico and Nicaragua.

Golar LNG Ltd shares plunged almost 8 percent after Chief Executive Iain Ross resigned after nearly four years with the Norwegian-founded LNG shipping and projects company as it was completing the sell-off of assets to US LNG-for-power projects company New Fortress Energy.

Golar LNG Ltd, the operator of conventional carriers, floating import and export terminals and a power affiliate backed by its fleet of 27 ships, is expanding its floating LNG relationship with US processing technology firm Black and Veatch into activities such as “green” LNG and hydrogen.

Golar offers its experience of delivering and operating low-cost floating LNG infrastructure while B&V, based in Overland Park in Kansas, is a leading provider of LNG technology, particularly for topsides of floating LNG production hulls.

“Within 2020, Golar and B&V intend to jointly publish a ‘thought leadership paper’ on our first area of interest for collaboration, floating ammonia production with carbon capture and storage (Floating Blue Ammonia),” said a statement.

Golar also operates with its Golar LNG Partners affiliate whose fleet comprises 10 vessels, including conventional carriers, FSRUs and the converted floating liquefaction hull the “Golar Hilli Episeyo” operating offshore Cameroon. Another hull of an older LNG carrier is being converted for an FLNG project offshore Mauritania and Senegal in West Africa.

In subsequent months, Golar and B&V intend to focus on the technical and commercial viability of the most prospective floating applications of the green and blue technologies and areas of interest they intend to investigate.

Any project development and implementation that followed the initial studies would be subject to a separate commercial agreement between the two companies.

“Replacement of coal, fuel oil and diesel with cleaner burning LNG represents one of the easiest and most cost-effective near-term steps to decarbonize the worlds energy mix,” explained Golar Chief Executive Iain Ross.

Golar, whose shareholders include more than 15 major global investment banks and funds, many based in New York, also has a joint venture, formerly known as Golar Power but now called Hygo Energy Transition, with the fund Stonepeak Infrastructure Partners.

Its activities are centred on northeast Brazil, including a project in Sergipe, the smallest Brazilian state.

Hygo Energy has also signed an accord with the Brazilian state government of Pernambuco to develop an LNG import terminal in the Port of Suape.

Additionally, Hygo Energy recently appointed a new Chief Executive to replace the previous incumbent who decided to step down after being caught up in a Brazilian corruption investigation.

Hygo Energy subsequently named Paul Hanrahan, the former President and CEO of power producer and LNG terminal owner AES Corp. from 2002 to 2011, as the new CEO to replace Eduardo Antonello.

Golar LNG CEO Ross explained that the shipping company and Hygo Energy were well positioned to expand on their quick delivery infrastructure solutions and emerging use of bio LNG, made from waste flows.

Ross added that his company has a history of championing and delivering solutions to problems in its industry, and he cited the Environmental, Social, and Corporate Governance (ESG) agenda, which is the mantra that is now part of the investment creed of the “green” banking community on Wall Street.

“Golar looks forward to working with a likeminded and equally capable partner, in the field of floating ammonia and hydrogen production, carbon capture, and other decarbonisation initiatives,” stated Ross.

Hoe Wai Cheong, President of Black & Veatch’s oil and gas business, said the new collaboration builds on years of delivering commercial and technology innovation with Golar in monetizing natural gas reserves.

“Given hydrogen and ammonia’s use in many energy-intensive industries we can make meaningful progress in lowering the carbon footprint and help these industries meet new sustainability commitments,” stated the head of B&V oil and gas.

Hygo Energy Transition, the joint venture company formed by shipping and projects operator Golar LNG and US fund Stonepeak Infrastructure Partners for their Golar Power interests, has appointed a new Chief Executive to replace the previous incumbent who decided to step down after being caught up in a Brazilian corruption investigation.

Oct 2 (LNGJ) - Golar Power, the joint venture involving Stonepeak Infrastructure Partners and which in the future will be named Hygo Energy Transition, has apparently submitted the highest bid to lease the Salvador LNG import terminal in the northeast Brazilian state of Bahia, according to media reports in Brazil, citing officials involved in the process.

   In a securities exchange filing, Brazil’s state-controlled energy company Petrobras confirmed only that it had received an offer from Golar, though there were doubts about the final outcome because of a Hygo Energy executive being caught up in a completely unrelated bribery probe. Petrobras added that the tender process would now enter a phase in which interested parties could lodge appeals. A total of 12 companies applied to submit offers, including Spanish energy company Repsol and France’s Total.

Petróleo Brasileiro, the Brazilian oil and gas company known as Petrobras, said it would review the participation of the Golar Power joint venture company in a tender process to lease the liquefied natural gas import terminal at Salvador in the northeast state of Bahia.