US-listed New Fortress Energy is poised to become a shipowner with a 13-vessel fleet on the completion of its $5bn buyout of Tor Olav Troim-controlled Hygo Energy Transition and Golar LNG Partners.
New Fortress will acquire seven floating storage and regasification units and six LNG carriers under the planned transaction, which is due to be completed in the first half of this year.
In addition, New Fortress nets 50% interests in Hygo's 1500MW Sergipe power plant in Brazil and its floating LNG production unit Hilli Episeyo in Cameroon, West Africa.
Its focus is on bringing quick-to-market, gas-to-power projects online. It is also backing a transition to hydrogen.
Going global
The company kicked-off in the Caribbean where it has three existing LNG terminals in operation — two in Jamaica and one in Puerto Rico.
It was due to complete a fourth at La Paz in Mexico by mid-December, with an associated power plant scheduled to be operational late this quarter. A fifth in Nicaragua is due online in the first half of 2021.
But New Fortress chairman and co-founder Wes Edens has been keen to expand the model globally. In October, he said the company was working on eight potential new projects worldwide in markets with large populations, existing power infrastructure and opportunities for economic growth.
| Ship | Cbm | Built | Type |
| Celsius | 160,000 | 2013 | TFDE LNG carrier* |
| Penguin | 160,000 | 2014 | TFDE LNG carrier* |
| Princess | 138,000 | 2003 | steam turbine LNG carrier |
| Mazo | 135,000 | 2000 | steam turbine LNG carrier |
| Maria | 145,000 | 2006 | steam turbine LNG carrier |
| Grand | 145,000 | 2006 | steam turbine LNG carrier |
| Spirit | 129,000 | 1981 | LNG carrier-FSRU conversion |
| Winter | 138,000 | 2004 | LNG carrier-FSRU conversion |
| Freeze | 125,000 | 1976 | LNG carrier-FSRU conversion |
| NR Satu | 125,000 | 1977 | LNG carrier-FSRU conversion |
| Igloo | 170,000 | 2014 | FSRU |
| Eskimo | 160,000 | 2014 | FSRU |
| Nanook | 170,000 | 2018 | FSRU |
* candidate for FSRU conversion
New Fortress’ ambition echoes that of Hygo.
In its most recent results statement, Hygo joint-venture partner Golar LNG detailed several planned, FSRU-based terminal projects in Brazil, including advanced plans for its Barcarena facility. But Hygo also added that it was pursuing more than 15 terminal opportunities worldwide.
Separately, New Fortress said on Wednesday that it intends to develop an LNG terminal and a 288MW gas-fired power plant at Suape Port in the state of Pernambuco, Brazil, for start-up at the end of 2022 — a project Hygo had been working on.
Golar gazing
The sale of Hygo and Golar LNG Partners took the market by surprise on Wednesday.
But it also raised questions about Golar LNG’s future.
Just weeks earlier, Golar LNG said it remained committed to spinning off its downstream business into Hygo after a US listing was derailed by the investigation of Hygo’s chief executive.
Instead of the Hygo sale, many industry players had been anticipating a sell-off of Golar LNG after several earlier failed efforts to start the break-up of that company’s assets.
Golar LNG chairman Tor Olav Troim, who is a close friend and associate of Edens, hinted at his dissatisfaction with his company’s development in a November results call.
Listing what he is proud of about Golar, Troim said: “What I am not so proud of is the way we have financed and marketed this company.”
At the time, Troim said Golar had much to learn from some of its competitors, adding that the board would look at direct distribution, sale of assets or demerger — or whatever it would take — to improve the value of the company relative to its current share price.
LNG shipping is “not really the business we love to be in long term”, he said, adding: “The midstream is not our business going forward and it shouldn’t be.”
