LNG

US investment firm Stonepeak has agreed to acquire a 40% shareholding in Woodside Energy’s Louisiana LNG export project and contribute $5.7 billion towards the project’s capital expenditure. Woodside CEO Meg O’Neill called the transaction a material step towards readiness for FID.

Stonepeak, the New York-based investment and asset management firm, has given a $300 million loan to California-based company Clean Energy Fuels Corp., the operator of one of America’s largest natural gas fuelling station networks.

The loan to Clean Energy Fuels, listed on the Nasdaq global exchange, is in the form of a senior secured term loan for a six-year period and will help with expansion plans.

“In addition to repaying existing loans, the financing from Stonepeak will provide Clean Energy with capital for new renewable natural gas (RNG) production facilities, as well as the expansion of the company’s fuelling infrastructure targeting the heavy-duty truck market,” said Clean Energy, based in Newport Beach, California.

The company currently provides RNG made from waste in the form of LNG and compressed natural gas (CNG) to hundreds of vehicle fleets every day.

Timely loan

“Stonepeak is one of the most well-respected infrastructure investment firms operating in the energy transition space and we’re excited to partner with them as we grow our RNG business,” said Clay Corbus, Senior Vice President for strategic development at Clean Energy.

“This financing agreement is very timely as we continue to see more RNG development opportunities come our way, and as we anticipate building additional stations to accommodate increased demand due to the arrival of the Cummins 15-liter natural gas engine,” the company explained.

Stonepeak, which has around $58 billion under management, said it regards RNG as a “practical and affordable energy solution for the transportation sector” and with good tailwinds.

“This, combined with its ability to curb fugitive methane emissions, makes it a critical part of decarbonization infrastructure, in our view,” said Michael Bricker, Senior Managing Director at Stonepeak.

“With its proven asset base and operating history, we believe that Clean Energy has differentiated itself both within this space and relative to earlier stage verticals and other platforms pursuing the energy transition. We look forward to partnering with the Clean Energy team in supporting the company’s next phase of growth,” Bricker explained.

Texas RNG

Clean Energy noted that it was currently developing a portfolio of RNG production facilities at dairy farms across the country.

The first project is producing RNG in Texas and supplying it to the transportation market in Oregon through the state’s low-carbon fuels program.

Clean Energy is also expanding its RNG fuelling infrastructure, which currently includes over 600 stations across North America.

This comes at a time when engine-maker Cummins Inc. is testing a new larger natural gas engine for heavy-duty trucks with companies like Walmart, Werner, Knight Swift and UPS.

“These fleets are experiencing an improved fuel economy with more torque and power than previous models, while at the same time dramatically reducing greenhouse-gas (GHG) and NOx emissions compared to diesel,” said the company.

“The 2024 commercial launch of the Cummins X15N engine is much anticipated by the industry,” it added.

The Stonepeak term-loan bears interest at 9.5 percent per annum. During the first two years, Clean Energy may elect to pay up to 75 percent of the interest in kind.

“In connection with this transaction, Clean Energy issued warrants to Stonepeak for the purchase of 10 million shares of common stock with an exercise price of $5.50 per share and 10 million shares of common stock with an exercise price of $6.50 per share,” said Clean Energy.

“The warrants expire on June 15, 2032 and are exercisable at any time after December 12, 2025,” the company added.

Stonepeak, the New York-based investment firm specializing in energy infrastructure, has completed the acquisition of a 50 percent interest in the Key Access Pipeline System (KAPS), a Canadian natural gas liquids pipeline that will impact future feed-gas needs for LNG exports from Western Canada.

Venture Global LNG has confirmed the closing of the project financing for its Calcasieu Pass LNG facility and associated TransCameron pipeline in Cameron Parish, Louisiana.

Golar LNG said its power venture subsidiary set up with Stonepeak Infrastructure Partners closed a financial agreement for a project in northeast Brazil involving a power plant and a liquefied natural gas import facility.

Australian project developer LNG Ltd said New York-based fund Stonepeak Partners is continuing its support for the Magnolia LNG export project in Louisiana after amending its original commitment agreements.

Stonepeak Infrastructure Partners, the New York-based equity fund, has made its second major liquefied natural gas investment by starting a joint venture with Golar LNG, the LNG fleet owner and project developer after previously taking a stake in Magnolia LNG in Louisiana.