Excelerate Energy has entered into a definitive agreement to acquire all New Fortress Energy’s assets in Jamaica for $1.055 billion in cash. Under the terms of the agreement, Excelerate will acquire the assets and operations of the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and the Clarendon combined heat and power co-generation plant. The company expects to assume all material contracts currently in place.
The deal adds downstream and “last-mile” infrastructure to complement Excelerate’s portfolio and earns the company a differentiated position as Jamaica’s sole LNG platform, benefitting from years of invested capital and history serving industrial customers and the Jamaica Power System, including one of the country’s largest gas-fired power plants.
“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 CEO of Excelerate. “Importantly, this transaction also enhances our 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.”
New Fortress Energy called the sale “meaningful” as it continues to look to streamline its operations and improve its financial flexibility.
The assets acquired include Jamaica’s only two LNG terminals, serving power plants and industrial customers, as well as Jamaica’s only combined heat and power co-generation plant. Long-term, Excelerate plans to use its own Venture Global LNG supply—20 years at 0.7 mtpa—which it says is well-matched with customer off-take commitments and minimizes commodity risk.
The Montego Bay facility was commissioned in 2016 and features landed storage, truck- loading facilities, a regasification plant, and pipeline. The facility supplies the 145-MW Bogue power plant as well as industrial customers.
The Old Harbour facility was commissioned in 2018 and features a floating storage and regasification unit and associated pipelines. The facility supplies the 190-MW Old Harbour power plant and the 150-MW Jamaica gas-fired, co-generation power plant.
Jamalco was commissioned in early 2020 and supplies steam to the neighboring Jamalco bauxite facility and power to the Jamaican grid.
Excelerate added that the acquisition offers opportunities to expand in Jamaica, leveraging existing infrastructure, including LNG bunkering and incremental gas supply.
The company will use both cash on hand and permanent financing to pay for the purchase. Excelerate also has an $850 million committed bridge facility, if needed.
The acquisition is expected to close as early as the second quarter of 2025, subject to regulatory approvals and other customary closing conditions.
