Excelerate Energy, Inc. has reached a definitive agreement with New Fortress Energy Inc. to acquire NFE’s downstream liquefied natural gas (LNG) and power infrastructure business in Jamaica for $1.055 billion in cash, the companies announced Thursday.

Under the terms of the agreement, Excelerate will take ownership of the Montego Bay LNG Terminal, the Old Harbour LNG Terminal, and the Clarendon combined heat and power (CHP) co-generation plant. Excelerate anticipates assuming all existing material contracts associated with these assets.

“This transaction represents an important milestone in the execution of Excelerate’s downstream growth strategy,” said Steven Kobos, President and Chief Executive Officer of Excelerate, in a statement. “It will expand and diversify our platform, while positioning Excelerate as the key provider of essential LNG import infrastructure in a desirable and growing Atlantic basin natural gas market.”

Kobos added that the acquired assets complement Excelerate’s current operational expertise and its long-term LNG supply agreements. He also noted the potential for future growth opportunities as natural gas becomes an increasingly vital component of Jamaica’s energy mix.

“Importantly, this transaction also enhances our financial profile, providing predictable, long-term cash flows at stable margins with a weighted average remaining contract duration of approximately 21 years including contract extensions,” Kobos said. “We are confident the addition of this Jamaica platform will deliver significant value for our shareholders, while building on our commitment to providing cleaner and more affordable natural gas to countries across the globe.”

Excelerate highlighted several strategic and financial benefits of the acquisition:

• Integrated Infrastructure: The deal adds fully integrated downstream LNG and power infrastructure, creating high barriers to entry for competitors. This includes Jamaica’s only two LNG terminals, serving power plants and industrial customers, and the nation’s only combined heat and power co-generation plant.

• Long-Term Contracts: The acquired assets feature an infrastructure-like contract profile with stable margins and long-term offtake agreements with high-quality customers. As of Dec. 31, 2024, 86% of contracted revenue was on a Take-or-Pay basis, with a weighted average remaining tenor of approximately 13 years, representing roughly $2.9 billion in cumulative Take-or-Pay direct margin from 2025 through 2039. Excelerate plans to align its own Venture Global LNG supply with these customer commitments, minimizing commodity risk.

• Atlantic Basin Market Position: The Jamaica business strengthens Excelerate’s competitive standing in an attractive Atlantic basin natural gas market with access to abundant U.S. Gulf Coast LNG supply sources. This diversifies Excelerate’s geographic and operational exposure.

• Growth Opportunities: The acquisition presents potential organic growth opportunities within Jamaica, including LNG bunkering services leveraging existing infrastructure, the potential to double the generation capacity of the Clarendon CHP Plant, and the ability to expand LNG fuel supply for Jamaica’s industrial base.

• Enhanced Financial Profile: Excelerate anticipates the transaction will be immediately accretive to earnings per share and provide predictable long-term operating cash flows.

The cash purchase price of $1.055 billion represents a multiple of approximately 9 times the Jamaica business’ estimated adjusted EBITDA for 2025. Excelerate intends to fund the acquisition through a combination of permanent financing and available cash. The company has secured an $850 million fully committed bridge facility to backstop the financing.

The transaction, which has been unanimously approved by the Boards of Directors of both Excelerate and NFE, is expected to close as early as the second quarter of 2025, pending regulatory approvals and the satisfaction of customary closing conditions.