In a blockbuster deal poised to reshape the liquefied natural gas (LNG) market in the Atlantic basin, Excelerate Energy has announced a $1.055 billion acquisition of New Fortress Energy’s Jamaica operations. The deal, unveiled Thursday, positions Excelerate as a dominant force in LNG infrastructure and a key supplier in the region’s growing energy sector.

The acquisition encompasses two LNG terminals in Montego Bay and Old Harbour, as well as a 150-megawatt cogeneration plant in Clarendon.

Strategic Expansion for Excelerate Energy

With legal guidance from Gibson Dunn & Crutcher LLP, Excelerate Energy emphasized that the transaction will bolster its downstream growth strategy while ensuring long-term operational cash flow stability.

"This acquisition expands and diversifies our platform, positioning Excelerate as the leading provider of LNG import infrastructure in an increasingly attractive natural gas market," said Steven Kobos, Excelerate’s president and CEO.

The company expects the deal to be immediately accretive to earnings per share, a sign of confidence in the asset’s revenue-generating potential.

New Fortress Energy’s Exit: A Strategic Streamlining

New Fortress Energy, advised by Vinson & Elkins LLP, has been a major player in Jamaica’s energy landscape since 2016, pioneering the island’s shift toward cost-effective and cleaner natural gas solutions.

Despite its pivotal role, the company’s chair and CEO, Wes Edens, described the sale as a “meaningful step” in streamlining operations.

"Our Jamaican assets and employees have transformed the energy landscape, delivering hundreds of millions in fuel savings and enhancing reliability. We are confident Excelerate will continue this progress," Edens stated.

A Financed Power Play Backed by Global Banks

Financing for the deal will combine cash reserves with an $850 million fully committed bridge loan, backed by a heavyweight consortium of financial institutions, including:

• Barclays Bank PLC

• Wells Fargo Bank

• Crédit Agricole

• DNB Bank ASA

• Sumitomo Mitsui Banking Corp.

• BNP Paribas

• Morgan Stanley

• Nordea Bank

Regulatory Hurdles and Final Approvals

The transaction has unanimous approval from both companies’ boards and is on track to close in Q2 of 2025, pending regulatory green lights and closing conditions.

Financial advisory support comes from Evercore for Excelerate and Intrepid Financial Partners for New Fortress.

Meanwhile, Simpson Thacher & Bartlett LLP is advising Barclays, the lead financier of the bridge facility.

Legal Teams Powering the Deal

The complex transaction is being shepherded by powerhouse legal teams, including:

🔹 Gibson Dunn (Excelerate Energy): Andrew Kaplan, Maxwell Ball, Andrew Fabens, Jin Hee Kim, Michael Cannon, Krista Hanvey.
🔹 Vinson & Elkins (New Fortress Energy): Francisco Morales Barrón, Mark Brasher, Natan Leyva, Tzvi Werzberger, Patricia Adams, Becky Baker, Casey Hopkins, Sarah Mitchell, Kara Kuritz.

The Bigger Picture: Energy’s Changing Landscape

This high-stakes transaction underscores the accelerating shift in global energy markets, where LNG is playing a critical role as a transition fuel amid the global pivot toward cleaner and more flexible energy sources.

With Excelerate’s expansion and New Fortress’ recalibration, the battle for LNG dominance in the Atlantic basin is just heating up