New York-listed LNG company Excelerate Energy has sealed a definitive agreement with energy infrastructure company New Fortress Energy Inc. (NFE) under which Excelerate will acquire NFE’s business in Jamaica for $1.055bn in cash, Excelerate Energy said on March 27.
Under the terms of the deal, Texas-based 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.
According to the company’s announcement, Excelerate expects to assume all material contracts currently in place.
“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,” said Steven Kobos, president and chief executive officer of Excelerate.
“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, “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.”
The transaction was unanimously approved by the Excelerate and NFE boards of directors, Excelerate Energy said.
The deal is expected to close as early as the second quarter of 2025, subject to regulatory approvals and the satisfaction of other customary closing conditions.
