Golar, Stonepeak Tie Up in Golar Power JV

Image Courtesy: Golar

Liquefied natural gas (LNG) shipping company Golar LNG Limited has teamed up with private equity firm Stonepeak Infrastructure Partners to set up a joint venture company in an effort to grow in the FSRU and LNG fueled power market.

The 50/50 joint venture company, Golar Power Ltd, will offer integrated LNG based downstream solutions through the ownership and operation of floating storage and regasification units (FSRUs) and associated terminal and power generation infrastructure, according to Golar.

Under the agreement between the parties, Stonepeak said that its initial commitment to develop Golar Power is USD 290 million in new equity, however, it plans “to invest up to USD 500 million in the coming years,” Stonepeak Senior Managing Director, Luke Taylor, said.

Golar Power’s initial asset base will comprise the FSRU currently being constructed at South Korea’s Samsung Heavy Industries’ shipyard, two modern 160,000 cbm trifuel LNG carriers suited for conversion to FSRUs, and the right to invest in up to 25% of the Sergipe Power project, expected to take FID in the second half of 2016.

Golar will also grant Golar Power a one year option to acquire a further two LNG carriers for conversion to FSRUs.

Upon closing, Golar Power will immediately commence conversion of the first LNG carrier to a FSRU.

Subsequent to the formation of Golar Power and the contribution of the abovementioned assets, the company has sold a 50% interest in Golar Power to Stonepeak, which will acquire the stake for USD 117 million in cash, subscribe to USD 100 million in preference shares on closing of the deal and commit to USD 75 million in additional equity.

This, together with an additional USD 75 million funding commitment from Golar, in the period before the first quarter of 2018, including debt financing, is expected to fully finance the conversion of the two carriers to FSRUs, take delivery of the 2017 new-build FSRU and complete the financing of its share of the Sergipe Power project.

Approximately USD 214 million in ship mortgage debt and USD 217 million of remaining newbuilding capex on the FSRU is projected to be transferred to Golar Power.

The first converted vessel is expected to be available within 16 months.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Ferries Asia Summit

Propelling Regional Waterway Connectivity & Fleet-wide Operational Excellence

Ferry travel is in the limelight. The potential for driving tourism growth is immense – and for archipelago nations battling with urban congestion, ferry services pose a clean, efficient alternative in everyday public transport. But high-profile ferry accidents have brought ever greater attention to safety regulations for Asia’s maritime travel industry.

Amid these circumstances, how can vessel operators cope with ever-tightening safety requirements, while making the right decisions at the right time to capture rising demand? What are the smartest ways to improve service reliability and fleet quality, that maximize operating and capital spend? What are the industry’s best-practices for sustainable growth, and how can they be achieved?

Play your part! Join us at the Ferries Asia Summit 2017 to push forward the regional debate on making Asia’s ferry industry more progressive, safe, and commercially sustainable. Bringing together fast-ferry, RO-RO and ROPAX vessel owners along with international and domestic maritime regulators, classification agencies, shipbuilders and naval architects, this event connects the entire value chain for a meaningful holistic debate on ferry operations excellence in Asia.

WHAT’S ON THE AGENDA THIS YEAR?

Comprehensive debates on addressing the complexity of ferry safety in Asia: Is vessel age truly the greatest concern? How significant are other factors, and how can they be addressed?

Pathways to change through greater public-private collaboration

Contrasting viewpoints on the most effective ways to enhance operational stability & passenger management

Cost-efficient O&M strategies to extend vessel life & tips for stakeholder management to avoid purchasing mistakes

Integrating ferry business with tourism opportunities through strategic partnerships

Exciting formats including speed networking, panel discussions & a high-intensity fast-pitch ‘Shark Tank’!

For more information, click here to download the brochure.
If you would like to attend the event, register here before 3rd February to save USD 400.
Alternatively, email us at enquiry@iqpc.com.sg 
for any enquiries regarding the event.

More info

read more >

INMEX Vietnam 2017

The event is an exceptional meeting point for the global maritime community in Vietnam, a region where the industry remains buoyant and strong…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >