Published: September 12, 2022 |

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New Fortress Energy (NFE) and Apollo have entered into a definitive equity purchase and contribution agreement to sell 11 LNG infrastructure vessels owned by NFE to a newly formed joint venture between funds managed by Apollo and NFE in a transaction valued at approximately $2 billion. The JV will be owned approximately 80 percent by Apollo funds and 20 percent by NFE.

This transaction will create 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 leading investment and maritime experience. The platform provides critical infrastructure for the delivery, storage, and regasification of liquefied natural gas (LNG) to power countries around the world, which can reduce their reliance on oil and coal to lower carbon emissions while enabling 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.

The 11-vessel portfolio consists of six floating storage and regasification units, two LNG carriers, and three floating storage units The total implied enterprise value of the transaction is approximately $2 billion, and NFE will receive approximately $1.1 billion in proceeds after accounting for NFE’s share of the JV and paydown of existing debt.

As part of the transaction, NFE has agreed to charter ten of the 11 of the vessels from the platform for a period of up to 20 years commencing either upon close of the transaction or 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.

“Together with Apollo, we are creating a leading LNG marine infrastructure platform to help accelerate the energy transition while freeing up capital to continue to invest into our fast LNG and downstream LNG projects worldwide,” said Wes Edens, chairman and CEO of New Fortress Energy.

“We are pleased to be partnering with Apollo in creating a maritime infrastructure company that will help support NFE’s growing LNG infrastructure needs going forward,” added Edens.

“Energy transition and energy reliability are global priorities and core to Apollo’s sustainable investing platform. We’re pleased to further these initiatives through this long-term investment alongside our JV partners at New Fortress Energy,” said Apollo Partner Brad Fierstein.

“This is a high-quality portfolio that increases energy security around the world, accelerates decarbonization efforts, and facilitates LNG use which is cleaner and more affordable than diesel. We look forward to investing behind the platform’s growth to drive a more sustainable future,” added Fierstein.

Subject to satisfying customary closing conditions, including receipt of certain regulatory approvals and third-party consents, closing of the transaction is expected to occur in Q3 of 2022. .

About New Fortress Energy
New Fortress Energy Inc. is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the company’s assets and operations seek to support global energy security, enable economic growth, enhance environmental stewardship, and transform local industries and communities around the world.

To stop by New Fortress Energy’s website, CLICK HERE

About Apollo
Apollo is a high-growth, global alternative asset manager. In its asset management business, they seek to provide clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, their investing expertise across a fully integrated platform has served the financial return needs of clients and provided businesses with innovative capital solutions for growth. Through Athene, their retirement services business, they specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Their patient, creative, and knowledgeable approach to investing aligns clients, businesses they invest in.

To stop by Apollo’s website, CLICK HERE

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