New Fortress Energy Acquires Hygo Energy Transition, Golar LNG Partners

Updated 5 months 1 week ago

New Fortress Energy entered a definitive agreement in January 2021 to acquire Hygo Energy Transition, a 50-50 joint venture between Golar LNG (GLNG) and Stonepeak Infrastructure, and Golar LNG Partners (GMLP). With the acquisition of Hygo, NFE will acquire an operating FSRU terminal and a 50% interest in a 1,500-megawatt power plant in Sergipe, Brazil as well as two other FSRU terminals with 1,200 megawatts of power in advanced stages in Brazil. Hygo’s fleet consists of a newbuild FSRU and two operating LNG carriers. NFE will also acquire an owner of FSRUs and LNG carriers with the GMLP transaction. The addition of GMLP’s fleet of six FSRUs, four LNG carriers and a 50% interest in Trains 1 and 2 of the Hilli is expected to support both NFE’s existing facilities and project pipeline.

NFE will acquire all shares of Hygo for 31.3 million shares of NFE Class A common stock and $580 million in cash. GLNG will receive 18.6 million shares and $50 million in cash while Stonepeak will get 12.7 million shares and $530 million in cash. NFE will acquired all common units of GMLP for $3.55 per unit in cash. Goldman Sachs and Citi advised Hygo while Deutsche Bank advised GMLP with closing expected in the first half of 2021.

Wes Edens, New Fortress CEO

The addition of Hygo will quickly expand our footprint in South America with three gas-to-power projects in Brazil’s large and fast-growing market. With GMLP, we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline.