Page 15 - GLNG Week 02 2021

GLNG AMERICAS GLNG

The Golar Nanook
FSRU is one of the
assets NFE is acquiring.

NFE to acquire LNG and power assets

in Brazil, along with Golar LNG

INVESTMENT US-BASED New Fortress Energy (NFE) is set to capacity of about 1,200 MW. Additionally, it has
raise its profile through the acquisition of LNG two operating LNG carriers.
and power-generating assets in Brazil and of Meanwhile, the second agreement will allow
another company, Golar LNG, also known as NFE to take control of Golar LNG. This acquisi-
GMLP. tion will expand the former company’s fleet and
In a statement issued earlier this week, NFE asset portfolio, as the latter owns four LNG carri-
said it had entered into two definitive agree- ers and six FSRUs, as well as a 50% stake in Trains
ments with the relevant parties. It put the com- 1 and 2 of the Hilli, a floating LNG (FLNG) unit.
bined value of the two deals at around $5bn, Wes Edens, the chairman and CEO of NFE,
with the Hygo transaction “valued at a $3.1bn expressed satisfaction with the two new deals.
enterprise value and a $2.18bn equity value” and “With a strong presence in Brazil and a world-
the Golar LNG transaction “valued at a $1.9bn class LNG shipping business, Hygo and GMLP
enterprise value and $251mn common equity are excellent additions to our efforts to accelerate
value.” the world’s energy transition,” he said. “The addi-
One of the agreements provides for NFE to tion of Hygo will quickly expand our footprint in
buy Hygo Energy Transition from its current South America with three gas-to-power projects
shareholders, Bermuda-registered Golar LNG in Brazil’s large and fast-growing market. With
and the US private equity fund Stonepeak Infra- GMLP, we gain LNG ships and world-class oper-
structure Partners. These two entities have been ators that are an ideal fit to support our existing
operating Hygo through a 50:50 joint venture. terminals and robust pipeline.”
This acquisition will give NFE control over Tor Olav Trøim, the chairman of Golar
Hygo’s assets in Brazil. These include a new-build LNG, also struck an upbeat note. “We are
floating storage and regasification unit (FSRU), impressed with what Wes Edens and the NFE
the Golar Nanook, that is being used to import team have created and their commitment to
LNG via the port of Sergipe. They also include a changing the energy industry,” he commented.
50% stake in a 1,500-MW thermal power plant “They share our vision to provide cheaper and
(TPP) known as Centrais Eletricas de Sergipe cleaner energy to a growing population. The
(Celse) that burns gas imported via the FSRU consolidation of two of the entrepreneurial
under a 26-year supply agreement, LNG downstream players gives the company
Hygo also owns stakes in several other gas improved access to capital and creates a unique
and power facilities. It is building two other world-leading energy transition company
FSRU terminals at other sites in Brazil that will which Golar shareholders will benefit from
support gas-burning TPPs with a generating being a part of going forward.”™

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