Excelerate to Buy LNG, Power Assets from New Fortress for $1.055B

Excelerate Energy has agreed to buy New Fortress Energy’s (NFE) Jamaica LNG assets, including an import terminal in Montego Bay and power infrastructure business, for $1.055 billion cash, the companies said March 27.

The deal provides The Woodlands, Texas-based Excelerate exposure to the natural gas market in the Atlantic basin. The transaction includes NFE’s offshore floating storage and regasification terminal in Old Harbour as well as a 150 megawatt combined heat and power plant in Clarendon and associated infrastructure.

Excelerate said the deal adds an “infrastructure-like” contract profile with stable margins with 86% of contracted revenue was take-or-pay as of Dec. 31, 2024 with a weighted average remaining tenor of approximately 13 years. That represents approximately $2.9 billion of cumulative take-or-pay direct margin 2025 through 2039, the company said.

“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,” Steven Kobos, Excelerate president and CEO, said in a press release. “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.”

The cash purchase price of $1.055 billion represents a multiple of approximately 9x to the Jamaica business’ 2025 estimated adjusted EBITDA, Excelerate said. The company intends to fund the transaction using a combination of permanent financing and cash-on-hand. Excelerate has backstopped the financing with an $850 million fully committed bridge facility.

NFE said it will use proceeds from the transaction to pay down corporate debt and for general corporate purposes. The transaction is expected to close in second-quarter 2025 and implements NFE’s strategy to optimize its asset portfolio and enhance its financial flexibility, the company said.

The Excelerate transaction is a “meaningful step as we continue to streamline our operations,” said Wes Edens, chairman and CEO of New Fortress Energy. “We are proud of the contributions we have made to Jamaica’s energy transition. Our Jamaican assets and employees are world-class and have played a significant role in improving both the cost and reliability of energy on the island, and we are confident that Excelerate will continue to drive meaningful progress for Jamaica’s energy future.”

Intrepid Financial Partners acted as financial adviser and Vinson & Elkins LLP acted as legal counsel to NFE.

Evercore is serving as financial adviser and Gibson, Dunn & Crutcher LLP as legal adviser to Excelerate.

Barclays Bank PLC, Wells Fargo Bank, N.A., Crédit Agricole Corporate and Investment Bank, DNB Bank ASA, Sumitomo Mitsui Banking Corporation, Inc., BNP Paribas S.A., Morgan Stanley, and Nordea Bank Abp, New York Branch are providing committed bridge financing to Excelerate for the transaction. Barclays is leading the committed financing and Simpson Thacher & Bartlett LLP is serving as legal adviser.