NFE, Apollo complete $2B LNG maritime joint venture

US energy company New Fortress Energy (NFE) and compatriot alternative asset manager Apollo have completed the previously announced joint venture, establishing a platform that now owns and operates eleven liquefied natural gas (LNG) infrastructure vessels.

Illustration only; Courtesy of New Fortress Energy
Illustration only; Courtesy of New Fortress Energy

The vessel portfolio comprises six floating storage and regasification units (FSRUs), three floating storage units and two LNG carriers.

The platform has been named Energos Infrastructure and is owned approximately 80% by Apollo-managed funds and 20% by NFE.

Energos is a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE’s LNG downstream operations and development activities, as well as Apollo’s investment and maritime experience. The platform provides critical infrastructure for the delivery, storage, and regasification of LNG to power countries around the world, which can reduce their reliance on oil and coal to lower carbon emissions and enable potentially substantial cost savings.

In addition to serving NFE’s projects globally, the platform also serves a diversified customer base of utilities and energy companies worldwide under third-party charters.

As part of the transaction, NFE has agreed to charter ten of the vessels from the platform for a period of up to 20 years, and those charters have commenced immediately, or will commence upon expiration of the vessels’ existing third-party charter agreements.

The platform will also seek growth opportunities in support of both NFE and third parties to support the energy transition and bolster energy security globally.

“Reliable energy infrastructure is essential to address the global energy crisis and reduce emissions,” Wes Edens, Chairman and CEO of New Fortress Energy, commented.

“We are pleased to partner with Apollo to launch a premier LNG maritime infrastructure company that will enhance our efforts to bring cleaner fuel and energy security to customers around the world.”

“Energy transition and energy reliability are global priorities and core to Apollo’s sustainable investing platform. We’re very pleased to complete the JV transaction with NFE,” Apollo Partner Brad Fierstein said.

The total implied enterprise valuation of Energos is approximately $2 billion based on the JV transaction.

Energos Infrastructure will establish its headquarters in Stamford, CT.