Saturday, June 15, 2024

New Fortress Energy sells 20% stake in Energos Infrastructure

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U.S. energy major New Fortress Energy (NFE) has completed the sale of its 20% equity interest in Energos Infrastructure to funds managed by alternative asset manager Apollo Funds.

Energos Grand. Archive; Courtesy of Energos Infrastructure

NFE said the company intends to use net proceeds from this transaction for general corporate purposes, including repaying debt and investing in accretive downstream projects.

To note, Energos is a maritime infrastructure company formed by NFE and Apollo Funds in August 2022 to provide LNG delivery, storage and regasification services to a diverse customer base comprised of utilities and energy companies under long-term charters.

According to NFE, Energos owns and operates 13 LNG infrastructure vessels, consisting of nine floating storage and regasification units (FSRU), two floating storage units and two LNG carriers.

NFE, which currently charters six vessels from Energos, said it will maintain an active relationship with Energos to support NFE’s global operations through vessel charters for a period of up to 20 years. These charters have either commenced or will commence upon the expiration of each vessel’s existing third-party charter agreement.

Wes Edens, Chairman and CEO of New Fortress Energy, commented: “We are pleased to have established Energos with Apollo Funds, our joint venture partner, and to have built it into a premier LNG maritime infrastructure company today. Completing the sale of our interest to Apollo Funds allows us to recycle proceeds into high-return downstream projects and to reduce debt.”

To remind, Energos Infrastructure announced the acquisition of its latest two FSRUs from affiliates of an LNG maritime transportation company Dynagas at the beginning of 2024.

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