Private equity group Stonepeak Infrastructure Partners has formed a 50:50 venture with ship operator Golar with the intention of owning and operating floating storage and regasification (FSR) vessels.
The preliminary announced plans call for an initial investment of $290 million by Stonepeak to establish the venture to be called Golar Power. The intention is to provide access to deep-sea LNG markets to regions that do not have sufficient demand or capital to create fixed receiving terminals.
The plan is just the latest of several efforts by companies involved in LNG to expand into smaller markets. Last month, Cheniere Energy Inc. announced plans to expand its LNG sales beyond the customary free-on-board basis and add delivered-ex-ship contracts. That would open new business to potential customers that do not have transport, storage or regasification.
Plans call for the Stonepeak-Golar venture to comprise one FSR under construction, two existing LNG tankers that will be converted to FSRs and options to acquire two other tankers from the Golar fleet to convert. The deal also includes rights to invest in a quarter of the Sergipe Power project in Brazil, which is slated to be in service in 2020.
No details were provided about how the venture would function, either as fee-based provider of transport and delivery or as a seller of LNG as well; nor was there any suggestion of the potential size of the market, or of potential LNG suppliers or customers. Neither partner responded to repeated inquires.
Gregory Morris can be reached at gmorris@hartenergy.com.
Recommended Reading
Diamondback Prices Senior Notes to Help Cover Endeavor Deal Cost
2024-04-10 - Diamondback Energy’s notes will help cover cash consideration for the pending acquisition of Endeavor Energy as well as repaying debt owed by Endeavor.
GeoPark to Acquire Interests in Vaca Muerta
2024-04-11 - GeoPark Ltd. entered into a binding offer to acquire a non-operated working interest in Argentina’s Neuquen Basin’s Vaca Muerta Formation as it extends its reach across Latin America.
Marketed: Outpost Energy Alberta Properties Divestiture
2024-04-03 - Outpost Energy has retained Sayer Energy Advisors for a corporate sale process on properties in Alberta.
US Proposes Second GoM Wind Lease Auction
2024-03-20 - Combined, the four proposed areas for offshore wind have the potential to power about 1.2 million homes if developed, according to the Interior Department.
Beacon Offshore Divests Non-op Gulf of Mexico Interests
2024-04-05 - Beacon Offshore Energy said that with its non-op assets divested, it would turn all of its focus to its Shenandoah and Winterfell assets in the Gulf of Mexico.