New Fortress Energy (NFE) and Apollo have formed a $2bn LNG maritime joint venture to support the energy transition and bolster global energy security.
The Energos Infrastructure platform is owned approximately 80% by Apollo-managed funds and 20% by NFE.
The 11-vessel portfolio consists of six floating storage and regasification units, two LNG carriers and three floating storage units.
NFE has agreed to charter 10 of the vessels from the platform for a period of up to 20 years, and those charters have started immediately, or will commence upon expiration of the vessels’ existing third-party charter agreements.
Wes Edens, Chairman and CEO of NFE – which recently entered an agreement with Plug Power for a 120MW industrial-scale green hydrogen plant near Beaumont, Texas - said, “Reliable energy infrastructure is essential to address the global energy crisis and reduce emissions.”
He added the partnership will enhance its efforts to bring cleaner fuel and energy security to customers globally.
Apollo Partner Brad Fierstein said the energy transition and reliability are global priorities and core to sustainable investing for the firm, which has $515bn assets under management.
The Energos executive team will be led by newly appointed CEO Arthur Regan, who is a veteran maritime industry Chief Executive and Apollo operating partner.
Regan will also serve as director on the Energos Board. In addition, Kevin Kilcullen has been named Chief Financial Officer of Energos. Kilcullen was previously CFO at Diamond S Shipping until the closing of its recent merger transaction.
New businesses may well find fertile ground for innovation in LNG in the short- to medium-term, according to Deloitte. “Adaptability and nimbleness, not size, will likely dictate success in a more complex global gas market,” it states.
But it also notes continued weakness in demand for vessels will push rates further downward, allowing LNG liquefiers and buyers to secure long-term low rates.
The global LNG market is expected to reach $66.13bn by 2027, at a CAGR of 6.92% during 2022-2027, according to Mordor Intelligence.