NFE and Apollo Funds complete $2B LNG maritime joint venture, establishing Energos Infrastructure
16 August 2022
New Fortress Energy and Apollo completed the previously announced joint venture), establishing a platform which now owns and operates 11 liquefied natural gas (LNG) infrastructure vessels consisting of Floating Storage and Regasification assets; Floating Storage vessels; and LNG carriers. The platform has been named Energos Infrastructure and is owned approximately 80% by Apollo-managed funds and 20% by NFE.
Energos is a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE’s LNG downstream operations and development activities, as well as Apollo’s leading investment and maritime experience. The platform provides critical infrastructure for the delivery, storage, and regasification of LNG to power countries around the world. In addition to serving NFE’s projects globally, the platform also serves a diversified customer base of utilities and energy companies worldwide under third-party charters.
The 11-vessel portfolio consists of 6 Floating Storage and Regasification Units (FSRUs), 2 LNG Carriers (LNGCs), and 3 Floating Storage Units (FSUs). As part of the transaction, NFE has agreed to charter ten of the vessels from the platform for a period of up to 20 years, and those charters have commenced immediately, or will commence upon expiration of the vessels’ existing third-party charter agreements.
The platform will also seek growth opportunities in support of both NFE and third parties to support the energy transition and bolster energy security globally.
The total implied enterprise valuation of Energos is approximately $2 billion based on the JV transaction. Apollo Capital Solutions performed debt advisory and placement services for the JV and the debt financing was led by Brookfield Infrastructure Debt and also included a syndicate of other credit funds managed by Global Infrastructure Partners, HPS Investment Partners, LLC, and Carlyle Global Credit.
Investec Inc. and BMO Capital Markets Corp. led the arrangement of revolving credit facilities to support the transaction. NFE was advised by Akin, Gump in the transaction, Apollo was advised by Vinson & Elkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and the credit group was advised by Milbank LLP. Morgan Stanley and DnB Capital Markets acted as financial advisors to NFE in the transaction.
Energos Infrastructure will establish its headquarters in Stamford, CT.
New Fortress Energy is a global energy infrastructure company. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure, ships, and logistics assets to deliver turnkey energy solutions to global markets.
Apollo is a high-growth, global alternative asset manager. As of 30 June 2022, Apollo had approximately $515 billion of assets under management.