Excelerate Power, Inc. has entered right into a definitive settlement to amass New Fortress Power Inc.’s (NFE) enterprise in Jamaica for $1.055 billion in money.
Below the phrases of the settlement, Excelerate will purchase the property and operations of the Montego Bay LNG Terminal, the Outdated Harbour LNG Terminal, and the Clarendon mixed warmth and energy (CHP) co-generation plant, Excelerate stated in a information launch, including that it expects to imagine all materials contracts which can be at present in place.
The acquisition provides downstream and “last-mile” infrastructure to enrich and diversify Excelerate’s current portfolio, the corporate stated. The acquisition provides the nation’s solely liquefied pure fuel (LNG) platform and the Jamaica Energy System, together with one of many nation’s largest gas-fired energy crops.
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The property embrace Jamaica’s solely two LNG terminals, serving energy crops and industrial prospects, in addition to Jamaica’s solely mixed warmth and energy co-generation plant, in line with the discharge.
Excelerate stated it intends to fund the money buy worth of $1.055 billion utilizing a mix of everlasting financing and cash-on-hand. The corporate has backstopped the financing with an $850 million totally dedicated bridge facility.
The transaction is anticipated to shut as early because the second quarter of 2025, topic to regulatory approvals and the satisfaction of different customary closing circumstances, in line with the discharge.
In the long run, Excelerate stated it plans to make use of its personal Enterprise International LNG provide “which is well-matched with buyer offtake commitments, minimizing commodity danger”. The corporate has a 20-year Enterprise International LNG provide settlement for 0.7 million metric tons each year.
Excelerate stated the acquisition gives alternatives to increase in Jamaica, leveraging current infrastructure, together with LNG bunkering, an growth of the Clarendon CHP plant, and the flexibility to develop LNG gasoline provide for Jamaica’s industrial base, benefitting from the anticipated continued shift away from oil to pure fuel.
The acquisition additionally expands on the corporate’s core floating storage and regasification unit (FSRU) terminal providers and fuel provide companies in a development market, positioned in a extremely engaging Atlantic basin market with entry to considerable, close by U.S. Gulf Coast LNG provide sources, it stated.
“This transaction represents an necessary milestone within the execution of Excelerate’s downstream development technique. It’s going to increase and diversify our platform, whereas positioning Excelerate as the important thing supplier of important LNG import infrastructure in a fascinating and rising Atlantic basin pure fuel market,” Excelerate President and CEO Steven Kobos stated.
“These property complement our current operational experience and our long-term LNG provide agreements, whereas providing the potential for future development alternatives as pure fuel turns into an more and more important a part of Jamaica’s vitality combine,” Kobos continued.
Kobos added, “Importantly, this transaction additionally enhances our monetary profile, offering predictable, long-term money flows at secure margins with a weighted common remaining contract length of roughly 21 years together with contract extensions. We’re assured the addition of this Jamaica platform will ship important worth for our shareholders, whereas constructing on our dedication to offering cleaner and extra inexpensive pure fuel to international locations throughout the globe”.
Excelerate is a U.S.-based LNG firm positioned in The Woodlands, Texas.
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