New Fortress Energy recently added several new investments to its portfolio. The company’s new purchases ranged from Power Purchase Agreements to ships. The company’s goal is to offer millions of people worldwide access to affordable electricity and energy. CEO Wes Edens believes the company can do this and increase the companies profits, also.
Recently, New Fortress Energy purchased all the stock of Hygo Energy, the PPAs of Suape, and the entire collection of common stock belonging to Golar LNG Partners. The purchase price was over $3 billion. With these purchases, the company will have a presence in north and south Brazil. The terminals are located in the cities of Barcarena, Suape, Santa Catarina and Sergipe.
CEO Wes Edens stated several of the locations have terminals in place, in some locations terminals will have to be built. Two companies acquired through these transactions have 25 year contracts, already. The companies are Nanook and CELBA. Purchases made from Golar included a large number of ships. Edens stated its financially better to own long-term assets the company needs than to lease them.
The purchase of ships offers New Fortress Energy the opportunity to pursue access to natural gas found under water. Currently, according to CEO Wes Edens it’s faster to use the ISO Flex method to provide energy than the LNG method. A ship retrieving gas through the LNG method earns New Fortress Energy over 40% interest. The ship operates off the coastline of Africa.
New Fortress Energy owned several terminals in various countries before its purchases in Brazil. The company operates in Puerto Rico, Nicaragua, Mexico and Jamaica. Read More.
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