US-listed New Fortress Energy has finalised its buyout of Golar LNG joint venture Hygo Energy Transition and Golar LNG Partners.
The company completed its purchase of Hygo, a 50:50 JV between Golar and a fund managed by Stonepeak Infrastructure Partners, for nearly 31.4m shares of New Fortress and $580m in cash.
At the same time New Fortress has acquired all the outstanding common shares of Nasdaq-listed Golar LNG Partners for $3.55 per share in cash.
New Fortress said the combined transactions are valued at a $5.1bn enterprise value and $2.43bn equity value.
Ready-made fleet
The buys net New Fortress seven floating storage and regasification units, six LNG carriers and a 50% interest in trains 1 and 2 of the floating liquefaction unit Hilli Episeyo, which is in operation off Cameroon.
New Fortress said the buyouts transform it into "a leading international gas-to-power company".
The company highlighted its FSRU terminal and 50% interest in the 1,500-MW Sergipe power plant in Brazil. It is also in the process of developing three other FSRU-based LNG-to-power projects in the country.
New Fortress referenced one of these projects in a separate announcement that it has signed a memorandum of understanding with Norsk Hydro to supply gas to the Alunorte Alumina Refinery in Para, Brazil, for 15 years.
Norsk Hydro is switching its refinery over from fuel oil to natural gas to cut emissions and New Fortress will deliver gas to the facility from its planned Barcarena terminal, which is due to be in operation by 2022.
The deal resurrects an earlier one with Hygo Energy Transition which Norsk Hydro terminated in October in the wake of bribery allegations against Hygo's former chief executive.
“The addition of the Hygo team, together with a great portfolio of world-class LNG ships and operators, enhances our efforts to bring more clean and affordable energy around the world,” New Fortress chairman and chief executive Wes Edens said of the completion of the Hygo and Golar LNG Partners buyouts.
“With this acquisition, we are now a leading gas and power provider in a large and fast-growing market and have become one of the world’s premier energy transition companies.”
