New Fortress Energy secures funds for LNG infrastructure
New York City-based New Fortress Energy secured an $800 million loan from funds and accounts managed by units of Apollo Global Management to fund its liquefied natural gas (LNG) infrastructure.
Net proceeds of the loan will be used to fund the development and construction of New Fortress’s energy infrastructure projects around the world, and to repay the company’s existing $500 million term loan facility in full.
“This transaction provides additional capital for us to continue to build LNG terminals and infrastructure around the world,” said in a statement New Fortress chairman and CEO Wes Edens.
Apollo is a global alternative investment manager with approximately $323 billion of assets under management as of September 2019 in credit, private equity and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources.
New Fortress Energy has been developing LNG infrastructure in Jamaica and Puerto Rico and has also been contracted to develop an LNG terminal to supply natural gas to Angola for power generation.
New Fortress Energy inks long-term LNG supply deal
New York City-based New Fortress Energy has signed a long-term deal for the supply of liquefied natural gas through to January 2030.
Under the agreement, the company would purchase 27.5 million MMBtu per annum of LNG, or approximately 8 cargoes a year, at a price indexed to Henry Hub, the company said in its statement.
This agreement will support the growth of New Fortress’ customer base in international markets as the company develops LNG terminals and natural gas infrastructure, the statement reads.
“This agreement supports our efforts to spur economic growth and reduce emissions as we deliver more affordable and cleaner energy to our customers,” said New Fortress chairman and CEO Wes Edens.
“We evaluated a broad range of competitive offers to meet the expansion of our LNG terminals across international markets. We’re pleased to take advantage of the dislocation in global LNG markets and secure ten years of offtake for our growing business,” Edens said.
