The transaction is expected to close in the second quarter and will expand Excelerate's existing global footprint, as its LNG infrastructure is currently deployed in several countries, including Bangladesh, Brazil, Finland and Pakistan.
Last year, New Fortress began exploring options that included bringing in strategic partners or selling assets after it had to delay paying dividends to shareholders while it negotiated with bondholders to settle short-term debt obligations.
The deal with Excelerate “is a significant step as we continue to streamline our operations,” said New Fortress CEO Wes Edens. The company plans to use the proceeds from the sale to reduce its debt, which stood at $8.4 billion at the end of 2024.
The assets being sold include the Montego Bay shore terminal, the Old Harbour floating terminal and the Clarendon thermal power station. New Fortress previously said the station supplies 65 percent of Jamaica's electricity.
Excelerate said it expects the acquisition to be immediately accretive to its earnings per share as the assets complement its “existing operating experience and long-term LNG supply agreements.”
Both companies provide floating LNG import terminals that allow countries to import natural gas without the need to build large facilities that can cost tens of billions of dollars and take years to build.
Source: Reuters
