US-listed New Fortress Energy and asset management company Apollo have set up $2bn joint venture company Energos Infrastructure as their new vehicle that will control 11 LNG infrastructure maritime assets.
Announcing the completion of their planned joint venture, which was unveiled in early July, New Fortress said Energos now owns 11 vessels comprising two LNG carriers, six floating, storage and regasification units and three floating storage units.
New Fortress said it has agreed to charter 10 of the vessels from the new platform for a period of up to 20 years under charters that have either commenced immediately or will start upon expiration of the vessels’ existing third-party agreements.
“The platform will also seek growth opportunities in support of both NFE [New Fortress] and third parties to support the energy transition and bolster energy security globally,” New Fortress said.
Energos is owned approximately 80% by Apollo-managed funds and 20% by New Fortress.
New Fortress said the total implied enterprise valuation of Energos is approximately $2bn based on the joint-venture transaction.
The new company will set up its headquarters in Stamford, Connecticut.
The new partners announced that the Energos executive team will be led by newly appointed chief executive Arthur Regan.
Regan, who is described as “a veteran maritime industry CEO”, is also an Apollo operating partner.
He began his career as an officer on merchant ships before progressing to master. During his time ashore, Regan has worked for Arlington Tankers and Stena Bulk, and served on the board of directors at Chembulk Tankers and Genco Shipping & Trading.
Kevin Kilcullen, the former chief financial officer at Diamond S Shipping, has been named CFO at Energos.
Wes Edens, chairman and and chief executive at New Fortress, said: “Reliable energy infrastructure is essential to address the global energy crisis and reduce emissions.”
Edens said his company is pleased to partner with Apollo on an LNG maritime infrastructure company, which he added will enhance New Fortress’ efforts to “bring cleaner fuel and energy security to customers around the world”.
Apollo partner Brad Fierstein said: “Energy transition and energy reliability are global priorities and core to Apollo’s sustainable investing platform.
“We’re very pleased to complete the JV [joint-venture] transaction with NFE [New Fortress], and to have an industry veteran like Art [Regan] at the helm, leading the business into its next phase.”
