Excelerate to Acquire NFE’s Jamaican Business for $1.055B

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Excelerate to Acquire NFE’s Jamaican Business for $1.055B

Excelerate Energy, Inc. has entered into a definitive agreement to acquire New Fortress Energy Inc.’s (NFE) business in Jamaica for $1.055 billion in cash. Under the terms of the agreement, Excelerate will acquire the assets and operations of the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and the Clarendon combined heat and power […]

Excelerate Energy, Inc. has entered into a definitive agreement to acquire New Fortress Energy Inc.’s (NFE) business in Jamaica for $1.055 billion in cash.

Under the terms of the agreement, Excelerate will acquire the assets and operations of the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and the Clarendon combined heat and power (CHP) co-generation plant, Excelerate said in a news release, adding that it expects to assume all material contracts that are currently in place.

The acquisition adds downstream and “last-mile” infrastructure to complement and diversify Excelerate’s existing portfolio, the company said. The acquisition adds the country’s only liquefied natural gas (LNG) platform and the Jamaica Power System, including one of the country’s largest gas-fired power plants.

The assets include Jamaica’s only two LNG terminals, serving power plants and industrial customers, as well as Jamaica’s only combined heat and power co-generation plant, according to the release.

Excelerate said it intends to fund the cash purchase price of $1.055 billion using a combination of permanent financing and cash-on-hand. The company has backstopped the financing with an $850 million fully committed bridge facility.

The transaction is expected to close as early as the second quarter of 2025, subject to regulatory approvals and the satisfaction of other customary closing conditions, according to the release.

In the long term, Excelerate said it plans to use its own Venture Global LNG supply “which is well-matched with customer offtake commitments, minimizing commodity risk”. The company has a 20-year Venture Global LNG supply agreement for 0.7 million metric tons per annum.

Excelerate said the acquisition offers opportunities to expand in Jamaica, leveraging existing infrastructure, including LNG bunkering, an expansion of the Clarendon CHP plant, and the ability to grow LNG fuel supply for Jamaica’s industrial base, benefitting from the anticipated continued shift away from oil to natural gas.

The acquisition also expands on the company’s core floating storage and regasification unit (FSRU) terminal services and gas supply businesses in a growth market, positioned in a highly attractive Atlantic basin market with access to abundant, nearby U.S. Gulf Coast LNG supply sources, it said.

“This transaction represents an important milestone in the execution of Excelerate’s downstream growth strategy. It will expand and diversify our platform, while positioning Excelerate as the key provider of essential LNG import infrastructure in a desirable and growing Atlantic basin natural gas market,” Excelerate President and CEO Steven Kobos said.

“These assets complement our existing operational expertise and our long-term LNG supply agreements, while offering the potential for future growth opportunities as natural gas becomes an increasingly essential part of Jamaica’s energy mix,” Kobos continued.

Kobos added, “Importantly, this transaction also enhances our financial profile, providing predictable, long-term cash flows at stable margins with a weighted average remaining contract duration of approximately 21 years including contract extensions. We are confident the addition of this Jamaica platform will deliver significant value for our shareholders, while building on our commitment to providing cleaner and more affordable natural gas to countries across the globe”.

Excelerate is a U.S.-based LNG company located in The Woodlands, Texas.

To contact the author, email [email protected]

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