Jamaica to serve as Excelerate LNG regional hub

Excelerate Energy’s newly acquired Jamaica assets will serve as a regional hub for LNG distribution across the Caribbean.

Chief Executive Steven Kobos said Jamaica’s location gives it a structural cost advantage, given its proximity to the US, and will enable it able to respond quickly to regional demand.

In May, Excelerate completed its acquisition of the Montego Bay and Old Harbour LNG terminals, following a deal with New Fortress Energy in March, along with the Clarendon combined heat and power plant, and small-scale LNG storage and regasification sites across the island.

Kobos said, “The Jamaica transaction represents a strategic inflection point for Excelerate. Our growth strategy has long included owning and operating downstream infrastructure assets and today, our business model reflects that ambition.”

“With the addition of the Montego Bay and Old Harbour LNG terminals and the Clarendon CHP plant, we’ve expanded our role in the LNG value chain and created a more diversified platform for growth.”

His comments followed the company recording adjusted net income of $46.8m in the second quarter.

Last month Excelerate finalised an agreement to purchase an LNG carrier, Excelerate Shenandoah, which will be used to service the previously announced mid-term Atlantic Basin supply deal.

The LNG carrier also represents Excelerate’s first owned asset to be selected as an FSRU conversion candidate.