US-based gas-to-power company New Fortress Energy (NFE) has agreed to acquire Bermuda-based natural gas storage provider Hygo Energy Transition and Golar LNG Partners (GMLP) for a total of $5 billion.

Hygo Energy Transition is a 50-50 joint venture between Golar LNG (GLNG) and Stonepeak Infrastructure Fund II Cayman (G), a fund managed by Stonepeak Infrastructure Partners.

Golar LNG Partners is the controlling company of Hygo Energy Transition.

New Fortress Energy, through the acquisition of Hygo Energy Transition, will acquire an operating floating storage and regasification unit (FSRU) terminal along with a 50% stake in a 1.5GW power plant in Sergipe, Brazil in addition to a couple of other FSRU terminals with 1.2GW of power in advanced stages in Brazil.

Hygo Energy Transition’s fleet features a newbuild FSRU and a couple of operating LNG carriers.

Wes Edens – Chairman and CEO of New Fortress Energy said: “With a strong presence in Brazil and a world-class LNG shipping business, Hygo and GMLP are excellent additions to our efforts to accelerate the world’s energy transition.

“The addition of Hygo will quickly expand our footprint in South America with three gas-to-power projects in Brazil’s large and fast-growing market. With GMLP, we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline.”

New Fortress Energy will acquire Hygo Energy Transition in a stock cum cash deal valued at $3.1 billion, comprising 1.4 million shares of its Class A common stock and $580 million in cash.

In line with the transaction, Golar LNG Partners will be issued 18.6 million shares of New Fortress Energy and $50 million in cash, while Stonepeak Infrastructure Partners will get 12.7 million shares of the US firm along with $530 million in cash.

The closing of the deal, which is subject to regulatory approvals, third party consents, and other customary closing conditions, is likely to occur in the first half of this year.

In the other deal, New Fortress Energy will acquire Golar LNG Partners for $3.55 per share or $1.9 billion. The gas-to-power company will also acquire Golar LNG Partners’ general partner for equivalent consideration based on the general partner’s economic interest in the latter.

The deal, which is subject to the approval of Golar LNG Partners’ shareholders, certain regulatory approvals and third party consents, and other customary closing conditions, is likely to be closed in the first half of this year.

Tor Olav Troim – Golar LNG Chairman said: “We are impressed with what Wes Edens and the NFE team have created and their commitment to changing the energy industry.

“They share our vision to provide cheaper and cleaner energy to a growing population. The consolidation of two of the entrepreneurial LNG downstream players gives the company improved access to capital and creates a unique world-leading energy transition company which Golar shareholders will benefit from being a part of going forward.”

  Oil and gas industry news