US LNG-to-power developer New Fortress Energy chosen to manage electricity generation in Puerto Rico
New Fortress Energy, the developer of LNG production, regasification and electricity projects and with a small shipping fleet, said its Genera subsidiary was selected by Puerto Rico to manage the US Caribbean territory’s power generation system.
Four-day window closes for expressions of interest in Mexican LNG export project at Coatzacoalcos
CFEnergía SA, a subsidiary of the Mexican Federal Electricity Commission (CFE), has closed a four-day window for pre-registration of expressions of interest from companies and investors to join an onshore LNG export project planned for the port of Coatzacoalcos in the state of Veracruz on the southern coast of the Gulf of Mexico.
New Fortress Energy boosts earnings and forecasts surge from floating LNG offshore Mexico and elsewhere
New Fortress Energy, the US LNG production and import projects developer, reported a jump in revenues and a swing to profits in the third quarter while forecasting bumper earnings from floating LNG production projects.
US equity fund Apollo advances with infrastructure venture involving New Fortress Energy and 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.
Delfin Midstream says initial engineering complete for first FLNG production unit for offshore Louisiana
Delfin Midstream, the US LNG export project shareholder offshore Louisiana, has completed the engineering and design phase of the venture for the first of its floating production vessels with South Korean shipyard Samsung Heavy Industries and US liquefaction technology company Black & Veatch.
