Texas-based liquefied natural gas business Excelerate Energy has signed a deal with energy infrastructure company New Fortress Energy (NFE) to acquire its Jamaican business for $1.05bn.
NFE’s Jamaican business consists of the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and a 150 MW combined heat and power (CHP) co-generation plant in Clarendon.
The $1.055bn cash purchase price is about nine times the Jamaica operation’s expected adjusted EBITDA for 2025.
Steven Kobos, President and CEO of Excelerate Energy, said, “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 Montego Bay LNG Terminal has a storage capacity of approximately 7,000 cubic meters of LNG across seven storage tanks. When built, it was Jamaica’s first LNG terminal. The Old Harbour LNG Terminal was commissioned in 2018 and is a floating storage and regasification unit (FSRU), with an underwater natural gas pipeline.
NFE’s Clarendon CHP co-generation plant supplies steam to the neighbouring Jamaican bauxite facility and baseload power to the Jamaican grid. The plant was commissioned in 2020.
With the deal Excelerate expects to assume all material contracts currently in place.
