Golar LNG has teamed up with a US-based private equity firm to develop its LNG carrier conversion plans through an initial equity boost of $290m.
Stonepeak Infrastracture Partners will be Golar’s partner in the 50-50 joint venture (JV), to be called Golar Power.
Luke Taylor, Stonepeak’s senior managing director, said: “We are excited to partner with the leading player in the LNG downstream market and see compelling opportunities in this market to build and operate long-term LNG and power infrastructure with high quality counterparties.”
Golar Power’s initial asset base will include Golar’s floating storage and regasification unit (FSRU) currently built at Samsung, two 160,000-cbm LNG carriers suited for FSRU conversion and the right to invest in up to 25% of the Sergipe Power project.
Golar said in a statement: “By establishing this downstream entity with a strong financial partner that has extensive experience in the energy business, Golar is able to accelerate the realization of its downstream ambitions and exploit the unprecedented number of opportunities in the current market.”
Taylor added that despite the initial $290m commitment, Stonepeak aims to invest up to $500m in the coming years.
Stonepeak will splash out $117m in cash to acquire 50% of Golar Power and subscribe to $100m in preference shares.
It will also commit $75m in additional equity, which with an additional $75m funding from Golar, will be sufficient to fully finance the two 160,000-cbm carriers’ conversion and to take delivery of the Samsung-built unit.
Golar said the first converted vessel is expected to be available within 16 months.
The deal includes an option that could see Golar Power acquire two more LNG carriers from Golar.
