Excelerate Energy has announced a definitive agreement to acquire New Fortress Energy’s downstream liquefied natural gas (LNG) and power infrastructure business in Jamaica for $1.06bn in cash.
This acquisition includes the Montego Bay LNG Terminal, Old Harbour LNG Terminal and the 150MW Clarendon combined heat and power (CHP) co-generation plant, enhancing Excelerate’s existing portfolio with downstream infrastructure.
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The assets involved are the only two LNG terminals in Jamaica and the only CHP co-generation plant, serving both power plants and industrial customers.
The transaction, valued at approximately nine-times the Jamaica business’ 2025 estimated adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation), will be funded through permanent financing and cash-on-hand.
Excelerate has secured an $850m fully committed bridge facility to backstop the financing.
The acquisition positions Excelerate as Jamaica’s sole LNG platform, benefitting from first-mover advantage and its established presence in the Jamaica power system.
Excelerate will gain ownership of long-term contracted assets, offering stable margins and robust recontracting opportunities.
Excelerate president and CEO Steven Kobos said: “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.
“These assets complement our existing operational expertise and our long-term LNG supply agreements, while offering the potential for future growth opportunities as natural gas becomes an increasingly essential part of Jamaica’s energy mix.”
The acquisition strengthens Excelerate’s competitive position in the Atlantic Basin natural gas market, diversifying its geographic and operational exposure, and aligning with the company’s 20-year Venture Global LNG supply agreement.
Excelerate sees potential organic growth opportunities in Jamaica, such as LNG bunkering services and expanding the Clarendon CHP plant.
The acquisition also presents opportunities to increase LNG fuel supply for Jamaica’s industrial base, supporting the shift from oil to natural gas in Jamaica’s energy mix.
The Boards of Directors of both Excelerate and New Fortress Energy unanimously approved the transaction, which is expected to close by the second quarter of 2025, pending regulatory approvals and customary closing conditions.
New Fortress Energy Chairman and CEO Wes Edens said: “This transaction with Excelerate is a meaningful step as we continue to streamline our operations. 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.”
Evercore is serving as the financial advisor, while Gibson, Dunn & Crutcher is the legal advisor to Excelerate.
Barclays is leading the committed financing, with several banks providing bridge financing. Simpson Thacher & Bartlett is serving as legal advisor for the financing.
Intrepid Financial Partners is serving as the financial advisor and Vinson & Elkins as the legal advisor to New Fortress Energy.
Earlier this month, Excelerate Energy and Petrovietnam Gas signed a memorandum of understanding on US LNG supplies.
