New Fortress Energy offloads Energos stake

New Fortress said it will use the proceeds to repay its debt, for general corporate purposes, and invest in downstream projects.

Energos was formed by NFE and Apollo Funds in August 2022 to provide LNG delivery, storage and regasification services to a customer base comprising of utilities and energy companies under long-term charters. The entity owns and operates 13 LNG infrastructure vessels: nine floating storage and regasification units, two floating storage units and two LNG carriers.

NFE currently charters six vessels from Energos and post transaction, will continue to maintain an active relationship with Energos to support NFE’s vessel charters for up to 20 years. These charters have either commenced or will commence upon expiration of each vessel’s existing third-party charter agreement.

“We are pleased to have established Energos with Apollo Funds, our joint venture partner, and to have built it into a premier LNG maritime infrastructure company today. Completing the sale of our interest to Apollo Funds allows us to recycle proceeds into high return downstream projects and to reduce debt," said NFE chairman and chief executive Wes Edens.

Last week, American authorities said transporting LNG produced at NFE’s Mexico-based FLNG facility located offshore Altamira by non-US-qualified vessels would not violate the Jones Act.

NFE can now sell and deliver gas produced at its facility to US customers.