Golar LNG has agreed to acquire the New Fortress Energy ownership stake in FLNG Hilli in exchange for Golar’s remaining 4.1 million shares in NFE and $100 million in cash. Golar will also take over approximately $323 million in debt obligations linked to Hilli.
Pursuant to the transaction, Golar will acquire the 50% interest in Trains 1 and 2 of FLNG Hilli, currently owned by a subsidiary of NFE. Following closing of the transaction, Golar’s effective interest in currently contracted FLNG Hilli earnings will be as follows:
- 94.55% of Common Units that receive tolling related fees relating to trains 1 and 2, and 5% of Dutch Title Transfer Facility (“TTF”) related fees,
- 89.1% of Series A units that receive Brent oil related fees,
- 89.1% of Series B units that receive 95% of TTF related fees.
Following the transaction Golar will have no remaining shareholding in NFE.
Commenting on the transaction, Golar CEO Karl Fredrik Staubo said “Today’s announced transaction increases Golar’s portion of cash flow generation from Hilli’s existing contract ending in July 2026. Improved market fundamentals for liquefaction capacity and Hilli’s market leading operational track record supports increased utilization and earnings potential of Hilli upon re-contracting. The transaction continues our company simplification, reducing our investments in listed securities whilst unifying the ownership of the FLNG Hilli.
We have enjoyed the collaborative relationship with NFE and look forward to observing their continued contribution to expanding the global LNG market through technical solutions complementary to Golar’s business.”
Wes Edens, Chairman and CEO of New Fortress Energy said “From a strategic perspective, the transaction allows us to focus solely on our own FLNG portfolio that we own 100 percent of as well as buy back NFE stock at an attractive valuation. Golar has been a meaningful partner for the past several years and we have appreciated the opportunities to collaborate with them as we continue to advance NFE’s mission to bring more affordable, reliable and cleaner energy to customers around the world.”
Subject to customary conditions, the transaction is expected to close in Q1 2023.
