NFE Completes Divestment of Jamaican Assets to Excelerate

New Fortress Energy Inc. (NFE) has closed the sale of its assets and operations in Jamaica to Excelerate Energy, Inc. for $1.055 billion.

Excelerate has acquired full ownership of NFE’s liquefied natural gas (LNG) import terminal in Montego Bay, an offshore floating storage and regasification terminal in Old Harbour, and a 150-megawatt (MW) combined heat and power plant in Clarendon, along with the associated infrastructure.

Proceeds from the transaction will be used to reduce NFE’s corporate debt and for general corporate purposes, the company said in a news release.

“The closing of the sale of our Jamaican assets to Excelerate is a significant milestone for the Company as we streamline our operations and paydown corporate debt through asset sales,” NFE Chairman and CEO Wes Edens said. “NFE has made a positive impact on Jamaica’s energy transition, and we are proud of the contributions our world class employees and assets have made in improving energy costs and reliability on the island. We are confident that Excelerate will continue NFE’s vision of providing reliable and cost-effective energy to Jamaica and continue to drive substantial progress towards improving Jamaica’s energy future”.

“Following the sale of our Jamaica business, our plan is to simplify our balance sheet with a potential asset based financing with a similar structure to other liquefier financings and using our robust portfolio of LNG terminals and long term LNG supply and downstream demand contracts,” NFE said.

Excelerate raised approximately $1.0 billion in equity and debt financings to fund the acquisition, the company said in a separate statement.

In the second quarter, Excelerate said it completed an equity offering of 8 million shares of class A common stock for $212 million of gross proceeds and closed an $800 million offering of 8.000% senior unsecured notes due 2030.

The maturity of Excelerate’s senior secured revolving credit facility was extended from March 2027 to March 2029 and the total capacity available for borrowing under the credit agreement was increased from $350 million to $500 million, according to the statement.

“The closing of this acquisition represents a significant step forward in the execution of Excelerate’s downstream expansion strategy,” Excelerate President and CEO Steven Kobos said. “These assets align seamlessly with our operational expertise and long-term LNG supply agreements, while also presenting promising opportunities for future growth. This acquisition enhances our financial outlook through its stable, long-term cash flows with predictable margins. We are confident that integrating this Jamaica platform will generate substantial value for our shareholders while advancing our mission to provide cleaner, more cost-effective natural gas solutions to the people of Jamaica”.

Excelerate said in an earlier statement that 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.

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, Excelerate said.

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