LNG

Naturgy Energy, the power company with LNG operations from Puerto Rico to Europe and pipeline gas networks from Algeria to South America, is no longer being targeted for a takeover by a company from Abu Dhabi in the United Arab Emirates.

TAQA, a power and water utility founded in 2005, had been in negotiations to acquire Spain's largest gas company, together with contracts with Algeria and also a long-term contract to import some 2.25 million tonnes per annum Russian LNG.

Under its formal name, Abu Dhabi National Energy Company (TAQA), the UAE company was aiming to acquire the stakes of equity funds that own a large proportion of Naturgy shares.

The UAE company, which is itself listed on Abu Dhabi Securities Exchange (ADX), is an international energy and water operator with a presence in 11 countries.

Boardroom doubts

However, the board of Abu Dhabi's TAQA has decided to withdraw from negotiations that would have launched a joint takeover bid for Naturgy along with Spanish holding company Criteria Caixa

TAQA's decision to drop the joint bid with Spain’s Criteria Caixa was final, according to investment banks involved in the talks.

TAQA had initially said it was also in talks with two private equity firms CVC and GIP, each owning more than 20 percent of Naturgy, to acquire their stakes.

The Abu Dhabi company's talks with Criteria Caixa involved its ownership of a 26.7 percent stake in Naturgy and a possible partnership agreement between TAQA and Criteria Caixa.

Naturgy has a market value of €24.3 billion ($26.Bln), though the transaction was seen by analysts as complicated.

Naturgy posted net income for 2023 of €1.98Bln, which was an increase on the €1.64Bln logged in the previous year.

Gas portfolio

The Spanish company has widespread pipeline natural gas assets in Europe, South America and in North Africa, including the Medgaz Pipeline for natural gas connecting Algerian gas fields to Almeria in southeast Spain.

Naturgy holds a 49 percent stake in Medgaz while Algeria’s state oil and gas company Sonatrach owns 51 percent.

Other Naturgy divisions include thermal generation in Spain and with nuclear and gas-fired power.

Naturgy’s operations additionally include gas and power assets in Mexico, Panama and Argentina where demand has been increasing, as well as in the Dominican Republic and in the US Caribbean territory of Puerto Rico.

Chart Industries Inc., the LNG equipment-maker and industrial gas technology company, has received all regulatory approvals to close the acquisition of UK engineering firm Howden for a purchase price of $4.4 billion from affiliates of KPS Capital Partners LP.

“Howden is a leading global provider of mission critical air and gas handling products providing service and support to customers around the world in highly diversified end-markets and geographies,” said Chart.

Howden manufactures highly engineered fans, compressors, rotary heat exchangers, steam turbines, and other air and gas-handling products, services and solutions.

Chart, based in Atlanta, Georgia, has funded the acquisition through a combination of cash and shares of a newly created class of preferred stock.

The UK company is headquartered in Renfrew, Scotland, and employs more than 6,500 people globally in 35 countries, including more than 750 engineers.

In the LNG sector alone, Chart has become a leading supplier of technology for major LNG projects under construction on the US Gulf Coast and is involved in providing regasification and LNG transportation equipment around the world, including in Europe and Asia.

New York-based fund KPS acquired Howden in 2019 from Colfax Corp. in a highly complex global corporate carve-out transaction.

Synergies

Chart said it had identified significant commercial synergies in the takeover that are expected to reach $350M annually by year three.

The US company said the combination of Chart and Howden furthers its global leadership position in highly engineered process technologies and products serving clean power, clean water, clean food and clean industrials.

Chart also announced it was scheduled to present at the Bank of America Global Industrials Conference in London on March 21 at 12:15 pm Greenwich Mean Time (8:15 am. Eastern Time).

Chart Chief Executive and President Jill Evanko is scheduled to be the presenter at the BoA event.

New Fortress Energy (NFE), the US LNG-for-power project developer has reached an agreement with shipping company Golar LNG for the sale of NFE’s ownership stake in a floating LNG production hull deployed off Cameroon in West Africa.

Origin Energy, the Australian upstream supplier to the Australia-Pacific LNG export plant in Queensland, saw its shares up 35 percent higher on November 14 as investors considered Origin’s backing for an A$18.4 billion (US$12.3 billion) buyout offer from a two-firm consortium led by Canada's Brookfield Asset Management.

May 19 (LNGJ) - Woodside shareholders voted to approve the proposed merger with the petroleum business of Anglo-Australian commodities group BHP at the AGM in Perth in Western Australia on May 19 where 98.66 percent of the votes submitted were in favour of the transaction. “Woodside expects completion of the Merger to occur on 1 June 2022. The new Woodside shares to be issued to or for the benefit of BHP shareholders are expected to commence trading on the Australian Securities Exchange on 2 June 2022,” said Woodside. 

   “Trading of Woodside American Depositary Shares on the New York Stock Exchange is expected to commence on 2 June 2022. Trading of Woodside shares on the main market for listed securities of the London Stock Exchange is expected to commence on 6 June 2022,” added the Perth-based company.

Senex Energy, the Australian coal-seam gas company in Queensland with an stake in Gladstone LNG, has entered into a binding with agreement with South Korea’s POSCO International for a cash offer price of A$4.60 per share.

Teekay LNG Partners reported a jump in net income in the third quarter as the shipping company prepared for a December vote on a deal worth $6.2 billion to become the latest LNG fleet to be taken over by, or merged with, US equity fund interests.

Teekay LNG Partners has become the latest fleet owner to be targeted by a US investment fund with Stonepeak Infrastructure Partners setting up a deal worth $6.2 billion to acquire the Bermuda-based shipping line, which has a large portfolio of vessels under charter contracts and part ownership of a Middle East LNG import terminal.

May 5 (LNGJ) - Trading in shares of Höegh LNG Holdings Ltd, the LNG fleet and projects company, has been suspended by the Oslo Børs in Norway to avoid incorrect registration of orders and trades in a situation where the company will no longer have any shares outstanding for trading. This follows the announcement that the family-controlled firm Leif Höegh and Co. and funds managed by Morgan Stanley Infrastructure Partners have completed the acquisition of Höegh LNG to take it private. However, the common and preferred units of US affiliate, Höegh LNG Partners LP, will remain outstanding and continue to trade on the New York Stock Exchange.

   “With the completion of the amalgamation, the joint venture intends to undertake a comprehensive review of the company’s operational and financial strategy and that of its affiliates to strengthen the financial profile of the group and will carefully review its integrated business plan including future financial needs,” added the Leif Höegh and Co. statement.

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.