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.

New Fortress Energy, the US operator and developer of liquefied natural gas projects in the Americas, has reached an agreement for LNG supply that will cover the needs of the existing gas-to-power businesses in Central America and the Caribbean through to the end of 2027, though was still seeking additional volumes for its Brazilian ventures.

Brazilian state oil and gas company, Petroleo Brasileiro (Petrobras), has disqualified a tender from Excelerate Energy of the US after it was the only commercial proposal received in the bidding for the Salvador liquefied natural gas import terminal in Bahia state in northeast Brazil.

New Fortress Energy, the LNG-for-power developer in Latin America and in the South American nation of Brazil, has asked a US Federal Appeals Court to review a decision of the US Federal Energy Regulatory Commission to force the New York-based firm to seek a permit for an LNG import terminal in Puerto Rico already on line.

Empire Petroleum Corp. of Oklahoma has completed the acquisition of 700 natural gas, oil and injector wells from ExxonMobil Corp. located in 40,000 net acres of legacy leaseholds in the US Permian Basin of New Mexico in the latest of a 2020-2021 wave of mergers and acquisitions in the energy sector, including LNG.

New Fortress Energy Inc, the New York-based company with expanding assets after two LNG acquisitions for shipping and Brazilian gas-to-power projects, posted a first-quarter loss as it pursues additional plans for floating LNG and natural gas production.

April 16 (LNGJ) - New Fortress Energy said it completed the acquisition of Hygo Energy Transition, a 50-50 joint venture between Golar LNG Ltd and Stonepeak Infrastructure Partners, for 31.37 million shares of NFE and $580 million in cash. NFE simultaneously closed the acquisition of Golar LNG Partners, including all of the outstanding common units of the Nasdaq-listed firm.

   The Golar LNG Partners transaction was valued at around $1.9 billion on an enterprise basis and $25M in equity value. “The addition of the Hygo team, together with a great portfolio of world-class LNG ships and operators, enhances our efforts to bring more clean and affordable energy around the world,” said Wes Edens, Chairman and Chief Executive of New Fortress.

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.

Stolt-Nielsen, the London-headquartered Norwegian company with terminal, shipping and Avenir LNG project interests, reported stable first-quarter earnings amid US disruptions and said the LNG import terminal on the Italian island of Sardinia would come on line in May.

The Norwegian small-scale LNG business of Stolt-Nielsen and partners Höegh LNG and Golar LNG has taken delivery of another gas supply and bunkering vessel (LBV) from the Keppel Offshore and Marine shipyard in the Chinese port of Nantong.

The Nordic joint venture called Avenir LNG has named its second 7,500 cubic metres capacity dual-purpose LBV, the “Avenir Accolade”, and it is now available.

The company said the “Avenir Accolade” would enter a three-year bareboat charter to LNG Power Limited, a subsidiary of Hygo Energy Transition to support Hygo’s developments in northeast Brazil.

This is the Avenir joint venture’s first entry into the Latin American LNG market.

Stolt-Nielsen, whose headquarters are in London, started up the small-scale LNG sector firm Avenir in 2015 and its two main investors, Golar and Höegh, each have 22.5 percent of Avenir.

The company said that the “Avenir Accolade” would soon be delivering LNG to Hygo’s customers along the Brazilian coastline.

“Fitted with specialised LNG handling equipment, she will be capable of unloading LNG directly into trucks for onward distribution across Brazil,” said Avenir.

The Hygo company was formerly known as Golar Power and is being acquired by New York-Based New Fortress Energy.

In addition to the growing small-scale LNG fleet, Avenir has an 80 percent stake in a small-scale LNG import project on the Italian island of Sardinia and set to start up soon.

Peter Mackey, Chief Executive of Avenir, said the company strategy was progressing on schedule.

“This is a transformational year for Avenir LNG as we commission our onshore LNG terminal in Sardinia in the coming weeks and continue to expand our fleet with the addition of four more newbuild vessels by year-end,” Mackey explained.

Avenir’s largest bunkering vessel, the “Avenir Allegiance” with 20,000 cubic metres capacity, entered the water in January 2021 at the Zhoushan Changhong Sinopacific shipyard in China’s eastern Zheijang province.

That vessel is scheduled to be delivered from the yard in the third quarter of 2021 and will join the Avenir fleet as the world’s largest LNG bunkering vessel.

Avenir’s first newbuild delivery, the “Avenir Advantage”, took place in October 2020 and has now been followed by the “Avenir Accolade” with other newbuilds, including one named the “Avenir Allegiance”, lined up for delivery during 2021.