Golar, Stonepeak Close Joint Venture Transactions

The liquefied natural gas (LNG) shipping company Golar LNG Limited said that the transactions for Golar Power Ltd, a 50/50 joint venture company between Golar and private equity firm Stonepeak Infrastructure Partners, have been completed.

Golar Power, a joint venture company set up in an effort to grow in the FSRU and LNG fueled power market, received the proceeds of a USD 100 million preferred note from Stonepeak and Golar LNG Limited received USD 116 million in respect of its sale of 50% of the shares in Golar Power.

After settlement of transaction related fees and Golar’s contribution to the working capital of Golar Power, approximately USD 104 million is expected to be added to Golar LNG Limited’s liquidity, the company said.

Golar Power, which expects to execute contracts for the conversion of its first LNG carrier to a floating storage and regasification units (FSRU) shortly, is expected to provide integrated LNG based downstream solutions through the ownership and operation of FSRUs and associated terminal and power generation infrastructure.

Stonepeak earlier 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.”

Golar Power’s initial asset base will comprise the FSRU currently being constructed at South Korea’s Samsung Heavy Industries’ shipyard, two 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.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2018 >>
MTWTFSS
25 26 27 28 29 30 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 3 4 5

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >