Excelerate Energy Expands Horizons with Jamaican LNG Acquisition
In a significant move for the energy landscape, Excelerate Energy, a U.S.-based liquefied natural gas (LNG) firm, has officially acquired an integrated LNG and power platform in Jamaica from New Fortress Energy (NFE). This $1.055 billion cash transaction marks a pivotal moment for Excelerate as it seeks to broaden its asset portfolio and strengthen its foothold in the Caribbean energy market.
A Strategic Acquisition
The deal, finalized in March 2025, allows Excelerate to take over key assets, including the Montego Bay LNG terminal, the Old Harbour LNG terminal, and the Clarendon combined heat and power plant. These facilities are not just bricks and mortar; they represent a vital part of Jamaica’s energy infrastructure, providing cleaner and more reliable energy to the island.
Steven Kobos, President and CEO of Excelerate, expressed enthusiasm about the acquisition, stating, “This acquisition enhances our financial outlook through its stable, long-term cash flows with predictable margins.” He emphasized that the integration of these assets aligns perfectly with Excelerate’s operational expertise and long-term LNG supply agreements.
Financing the Future
To fund this ambitious acquisition, Excelerate raised approximately $1 billion through a mix of equity and debt financing. This included an equity offering of 8 million shares of Class A common stock, generating $212 million in gross proceeds. Additionally, the company secured $800 million through senior unsecured notes due in 2030.
The financial maneuvering didn’t stop there; Excelerate also extended the maturity of its senior secured revolving credit facility, increasing its borrowing capacity from $350 million to $500 million. This financial flexibility will be crucial as the company integrates its new assets and explores future growth opportunities.
The Heart of Jamaica’s Energy
The Montego Bay terminal, located on Jamaica’s picturesque northwestern coast, is equipped with storage and truck loading facilities, a regasification plant, and natural gas pipelines. Commissioned in 2016, it plays a vital role in supplying LNG to the 145-megawatt Bogue power plant and various industrial customers.
Meanwhile, the Old Harbour terminal features a floating storage and regasification unit (FSRU) that has been operational since 2021. This facility serves the Jamaica Public Service Company’s 190-megawatt power plant and NFE’s 150-megawatt cogeneration power plant at Jamalco in Clarendon.
A Vision for Jamaica’s Energy Future
Wes Edens, Chairman and CEO of New Fortress Energy, highlighted the significance of this sale, stating, “NFE has made a positive impact on Jamaica’s energy transition.” He expressed confidence that Excelerate would continue the mission of providing reliable and cost-effective energy to the island.
With the sale, NFE aims to streamline its operations and reduce corporate debt, paving the way for a more focused approach to its remaining assets. The company plans to leverage its portfolio of LNG terminals and long-term supply contracts to enhance its financial standing.
Looking Ahead
As Excelerate Energy steps into this new chapter, the implications for Jamaica’s energy landscape are profound. The acquisition not only promises to bolster the island’s energy security but also aligns with the global shift towards cleaner energy solutions.
Will this strategic move pave the way for a more sustainable energy future in Jamaica? Only time will tell, but the excitement in the air is palpable as the island looks forward to what lies ahead.