Golar LNG Ltd. will acquire New Fortress Energy Inc.’s (NFE) entire interest in Hilli, a floating liquefaction facility offshore Kribi, Cameroon, for the return of 4.1 million NFE shares and $100 million in cash.
Announced in a Feb. 6 press release, the transaction is expected to close in first-quarter 2023.
“From a strategic perspective, [NFE’s transaction with Golar] will allow [New Fortress] to focus solely on our own FLNG portfolio that we own 100 percent of, as well as buy back NFE stock at an attractive valuation,” said Wes Edens, NFE chairman and CEO.
The agreement reduces the number of outstanding New Fortress shares to 204.7 million and eliminates NFE’S $323 million debt obligations from operations in the Hilli.
For Golar, “the transaction increases Golar’s portion of cash flow generation from Hilli’s existing contract until July 2026,” said Karl Fredrik Staubo, CEO of Golar.
NFE is a global energy infrastructure company.
Recommended Reading
ADNOC Buys 11.7% Stake in NextDecade’s Rio Grande LNG Project
2024-05-20 - The United Arab Emirates’ ADNOC will acquire a 11.7% equity stake in Phase 1 of NextDecade Corp.’s Rio Grande LNG (RGLNG) project from Global Infrastructure Partners (GIP), while also entering an offtake agreement for 1.9 mtpa from the Texas export facility.
NextDecade Targets Second Half of 2024 for Phase 2 FID at Rio Grande LNG
2024-03-13 - NextDecade updated its progress on Phase 1 of the Rio Grande LNG facility and said it is targeting a final investment decision on two additional trains in the second half of 2024.
Pitts: US, Qatar Face off in LNG ‘Olympics’
2024-05-03 - In the LNG exporting space, the U.S. is squaring off with its fiercest competitor, Qatar, with both countries expected to outpace Australia
CERAWeek: CEO Patrick Pouyanné Jokes that Texas is TotalEnergies’ ‘El Dorado’
2024-03-19 - TotalEnergies CEO Patrick Pouyanné said during CERAWeek by S&P Global that Texas was important for his company, which he jokingly called the French company’s “El Dorado” due to the state’s love for oil, gas and renewables.
Darbonne: Brownsville, We Have LNG Liftoff
2024-04-02 - The world’s attention is on the far south Texas Gulf Coast, watching Starship liftoffs while waiting for new and secure LNG supply.