New Fortress Energy to Sell Jamaican Assets to Excelerate Energy for $1.055 Billion

U.S. energy infrastructure player New Fortress Energy (NFE) has entered into a definitive agreement for the sale of its assets and operations in Jamaica to compatriot liquefied natural gas (LNG) player Excelerate Energy.

As stated by NFE, proceeds from the $1.055 billion cash transaction will be used to reduce its corporate debt and for general corporate purposes. The sale is said to mark a key step in the company’s strategy to optimize its asset portfolio and enhance financial flexibility.

Since the boards of directors of both companies are said to have unanimously approved the sale, the transaction is expected to close as early as Q2 2025, subject to regulatory approvals and the satisfaction of other customary closing conditions.

The transaction encompasses NFE’s LNG import terminal in Montego Bay, offshore floating storage and regasification terminal in Old Harbour, and a 150-megawatt combined heat and power plant in Clarendon, along with the associated infrastructure.

“This transaction with Excelerate is a meaningful step as we continue to streamline our operations,” said Wes Edens, Chairman and CEO of New Fortress Energy. “We are proud of the contributions we have made to Jamaica’s energy transition. Our Jamaican assets and employees are world-class and have played a significant role in improving both the cost and reliability of energy on the island, and we are confident that Excelerate will continue to drive meaningful progress for Jamaica’s energy future.”

NFE entered Jamaica in 2016. Since then, the company says it has made investments to steer the country’s transition to a more sustainable energy future by reducing the island’s reliance on oil-based fuels and supporting the growth of renewable energy.

“This transaction represents an important milestone in the execution of Excelerate’s downstream growth strategy. It will expand and diversify our platform, while positioning Excelerate as the key provider of essential LNG import infrastructure in a desirable and growing Atlantic basin natural gas market,” said Steven Kobos, President and Chief Executive Officer of Excelerate.

Kobos noted that the transaction also enhances his company’s financial profile, providing predictable, long-term cash flows at stable margins with a weighted average remaining contract duration of approximately 21 years, including contract extensions.

Located on Jamaica’s northwestern coast, the Montego Bay terminal features landed storage, truck loading facilities, a regasification plant, and natural gas pipelines. Commissioned in 2016, the terminal with a capacity of 740,000 gallons provides LNG for the country’s 145-megawatt Bogue power plant and industrial customers.

The Old Harbour facility features a floating storage and regasification unit (FSRU) docked 3.6 miles, or approximately 5.7 kilometers, out at sea and an underwater natural gas pipeline. The terminal was commissioned in 2019.

Old Harbour serves as a regional energy hub, supplying LNG to Jamaica Public Service Company’s 190-megawatt power plant in Old Harbour and NFE’s 150-megawatt co-generation power plant at Jamalco in Clarendon.

The FSRU Höegh Gallant was booked to serve the terminal for 10 years, starting in 2021. The vessel has a capacity of 170,000 cubic metres.

More recently, Excelerate inked a deal with Vietnam’s PV Gas to cooperate on sourcing LNG from the United States. The firm also held a keel-laying ceremony for a newbuild FSRU.

Meanwhile, NFE inked a deal to supply natural gas for a 478 MW combined-cycle power plant, which is currently under development in San Juan, Puerto Rico. The plant is located next to the U.S. firm’s existing San Juan LNG import terminal.