Energos Infrastructure Announces Transformative Marine LNG Asset Transaction with Long Term Charter Contracts in Germany

Rhea-AI Summary

Energos Infrastructure (APO) completes acquisition of two state-of-the-art FSRUs from Dynagas, becoming the largest owner and operator of LNG marine infrastructure vessels in Europe.

Insights

Energy Sector Analyst

The acquisition of two Floating Storage and Regasification Units (FSRUs) by Energos Infrastructure marks a significant expansion in the company's LNG operational capabilities, particularly within the European market. This strategic move is indicative of the growing demand for flexible and efficient LNG infrastructure amid a global energy landscape that is increasingly shifting towards cleaner energy sources. The long-term charter contracts with the German Federal Ministry signal a commitment by European nations to diversify their energy mix and reduce reliance on pipeline gas, particularly in light of recent geopolitical tensions affecting energy supply.

From an energy sector perspective, the investment in FSRUs is a forward-looking strategy that could provide Energos with a competitive edge. FSRUs offer a quicker, more versatile solution to LNG importation compared to traditional onshore terminals, which require significant capital and time to develop. The addition of Energos Force and Energos Power will likely enhance the company's revenue streams and could positively impact its market valuation. It also positions Energos as a key player in supporting Germany's energy transition and independence, which may lead to further governmental and industrial partnerships.

Financial Analyst

The involvement of prominent financial institutions such as BNP Paribas, Crédit Agricole CIB, Mizuho Bank and Sumitomo Mitsui Trust Bank in the acquisition financing of Energos Infrastructure's FSRUs provides a strong vote of confidence in the financial viability of the deal. The successful placement of debt by Apollo Capital Solutions underscores the attractiveness of the energy infrastructure sector to investors, particularly in projects that align with global sustainability goals.

For shareholders of Apollo-managed funds and New Fortress Energy Inc., this acquisition could signify a potential uplift in asset value and future earnings. The operation of these FSRUs in strategic locations like Germany, which is actively seeking to enhance its energy security, may result in stable and predictable cash flows for Energos. This stability is often favored by investors, especially in a sector known for its volatility. The market will be watching closely for the operational performance of these assets and their contribution to Energos' bottom line.

Environmental Policy Expert

The acquisition of the FSRUs by Energos Infrastructure is aligned with broader environmental policy goals of reducing carbon emissions and transitioning to cleaner energy sources. LNG is often touted as a 'bridge fuel' in the transition from coal and oil to renewable energy, due to its lower carbon footprint when combusted. The deployment of these vessels in Germany is particularly significant as the country has aggressive targets for reducing greenhouse gas emissions and is actively seeking solutions to phase out coal and nuclear power.

However, it is important to consider that while LNG is cleaner than other fossil fuels, it is not without environmental impact. Methane leakage during extraction and transportation can offset some of the climate benefits. Moreover, investments in LNG infrastructure could potentially lock-in fossil fuel use for the duration of the assets' lifespan. The role of FSRUs in supporting a sustainable energy future will likely be a topic of ongoing analysis and debate within environmental policy circles.

NEW YORK, Jan. 8, 2024 /PRNewswire/ -- Energos Infrastructure ("Energos" or the "Company"), an international marine LNG infrastructure company, majority-controlled by Apollo-managed funds (NYSE: APO) and minority shareholder New Fortress Energy Inc. (NASDAQ: NFE) ("NFE"), today announced that the Company has completed the acquisition of two state-of-the-art Floating Storage and Regasification Units ("FSRUs") from affiliates of Dynagas. The two 174,000 m3 closed-loop FSRUs, built in 2021, will be renamed Energos Force and Energos Power.

Earlier in 2023, the FSRUs commenced long-term charter contracts with the German Federal Ministry of Economic Affairs and Climate Change. The Energos Force is planned to operate in the port of Stade under direction of Deutsche Energy Terminals, while the Energos Power is planned to operate in the port of Mukran and has been subchartered to Deutsche Regas.

With these two high-specification liquefied natural gas ("LNG") regasification vessels added to its platform, Energos will own and operate 13 LNG infrastructure vessels consisting of nine FSRUs, two Floating Storage Units, and two LNG carriers. The addition of the Energos Force and Energos Power in Europe makes Energos the largest owner and operator of LNG marine infrastructure vessels by wholly-owned FSRU capacity operating within the continent.

"Reliable energy infrastructure is essential to address the global energy crisis and reduce carbon emissions," said Arthur Regan, CEO and Director of Energos Infrastructure. "We are pleased to acquire these critical assets in operating service in Germany, which we believe will solidify Energos as a premier LNG maritime infrastructure company and further supports our efforts to bring cleaner, more reliable energy to customers around the world."

Apollo Partner Brad Fierstein said, "We are pleased to support Art and the Energos team in executing this FSRU acquisition, which we believe will be transformative for the platform and support its continued growth. Providing enhanced energy security and enabling lower carbon power generation are core priorities to Apollo's efforts to help drive a more sustainable future and we believe the implementation of these new vessels can play a significant role in bolstering Germany's energy independence."

Apollo Capital Solutions performed debt advisory and placement services for the acquisition financing, which was led by BNP Paribas, Crédit Agricole CIB, Mizuho Bank, and Sumitomo Mitsui Trust Bank.

About Energos Infrastructure

Energos Infrastructure provides critical infrastructure for the delivery, storage, and regasification of LNG through long-term contracts, helping to power countries around the world and reduce their reliance on oil and coal, enhance energy security and reliability, and enable potential cost savings. Energos' asset platform serves a diversified customer base of utilities and energy companies worldwide under third-party charters in addition to serving NFE's projects globally. Energos benefits from Apollo's investment capabilities and maritime experience, as well as NFE's LNG downstream operations and development activities.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2023, Apollo had approximately $631 billion of assets under management. To learn more, please visit www.apollo.com.

About New Fortress Energy

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable, and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the company's assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.

Contacts

For Energos Infrastructure
Corporate Communications:
Jim Lawrence
MTI Network
203-550-2621
Jlawrence@mtinetworkusa.com 

Energos Media Contact:
Lauren Candee
media@Energosinfra.com

For Apollo
Investor Relations:
Noah Gunn
Global Head of Investor Relations
212-822-0540
IR@apollo.com

Media Relations:
Joanna Rose
Global Head of Corporate Communications
212-822-0491
Communications@apollo.com

For New Fortress Energy
Investor Relations:
Chance Pipitone
ir@newfortressenergy.com

Media Relations:
Ben Porritt
press@newfortressenergy.com
516-268-7403

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SOURCE Energos Infrastructure

FAQ

What did Energos Infrastructure announce?

Energos Infrastructure (APO) announced the completion of the acquisition of two state-of-the-art Floating Storage and Regasification Units (FSRUs) from affiliates of Dynagas.

Who are the majority and minority shareholders of Energos Infrastructure?

The majority shareholder of Energos Infrastructure is Apollo-managed funds (NYSE: APO), and the minority shareholder is New Fortress Energy Inc. (NASDAQ: NFE).

How many LNG infrastructure vessels does Energos own and operate?

Energos owns and operates 13 LNG infrastructure vessels, including nine FSRUs, two Floating Storage Units, and two LNG carriers.

What are the names of the two acquired FSRUs?

The two 174,000 m3 closed-loop FSRUs will be renamed Energos Force and Energos Power.

What are the planned operations of Energos Force and Energos Power?

Energos Force is planned to operate in the port of Stade under the direction of Deutsche Energy Terminals, while Energos Power is planned to operate in the port of Mukran and has been subchartered to Deutsche Regas.

Who performed debt advisory and placement services for the acquisition financing?

Apollo Capital Solutions performed debt advisory and placement services for the acquisition financing, led by BNP Paribas, Crédit Agricole CIB, Mizuho Bank, and Sumitomo Mitsui Trust Bank.