3 weeks ago
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New Fortress Energy, NFE, supplier of nearly two-thirds of the energy powering Jamaica’s electricity grid, announced on Thursday the sale of its Jamaican assets and operations to Excelerate Energy Inc for US$1 billion.
The proceeds will help New Fortress reduce its corporate debt and bolster working capital. The transaction, expected to close in the second quarter of 2025, aligns with the natural gas supplier’s strategy to streamline its portfolio and strengthen financial stability. As of December, New Fortress was carrying nearly US$9 billion in debt, which is 4.5 times its US$2-billion capital base.
The sale includes New Fortress’ LNG import terminal in Montego Bay, an offshore floating storage and regasification terminal in Old Harbour, and the 150MW Combined Heat and Power Plant in Clarendon, along with associated infrastructure.
“This transaction with Excelerate marks a meaningful step in streamlining our operations. We are proud of our contributions to Jamaica’s energy transition. Our Jamaican assets and employees are world-class, significantly improving energy affordability and reliability. We are confident Excelerate will continue driving progress for Jamaica’s energy future,” said NFE Chairman and CEO Wes Edens.
NFE was advised by Intrepid Financial Partners and Vinson & Elkins LLP. Excelerate Energy plans to utilise NFE’s infrastructure to enhance energy accessibility in Jamaica, while expanding its global presence.
The new owner of the Jamaican assets said it was focusing on a seamless transition.
“Excelerate is committed to connecting affordable LNG supply to global demand centres. We are excited to build on NFE’s success in Jamaica. This acquisition enables us to deliver reliable, sustainable, and cost-effective energy solutions to Jamaica for years to come while diversifying our global footprint,” said President and CEO of Excelerate Energy Steven Kobos in a joint statement with New Fortress.
“Our immediate focus is ensuring a seamless transition with the government and NFE,” Kobos said.
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