Excelerate Energy Seals $1.055 Billion Jamaica LNG Deal to Solidify Atlantic Basin Dominance

Excelerate Energy has entered into a definitive agreement to acquire New Fortress Energy’s Jamaica operations for $1.055 billion in cash, a move that substantially strengthens the company’s position in the critical “last-mile” LNG infrastructure segment. The transaction encompasses the Montego Bay LNG Terminal, Old Harbour LNG Terminal, and the Clarendon combined heat and power co-generation facility, establishing Excelerate as Jamaica’s sole integrated downstream LNG and power provider with significant first-mover advantages.

Strong Financial Foundation with Long-Term Visibility

The Jamaica platform delivers an attractive financial profile characterized by predictable cash flows and robust contract stability. As of December 31, 2024, approximately 86% of contracted revenue operates on a Take-or-Pay basis, translating to roughly $2.9 billion in cumulative direct margin through 2039. The weighted average remaining contract duration extends to approximately 21 years when including contract extensions, with the core contracted tenor at around 13 years. The transaction is priced at approximately 9 times 2025 estimated adjusted EBITDA, demonstrating compelling valuation economics for the acquirer.

Customers maintaining high credit quality profiles—with a weighted average rating of A3 / A—provide substantial reassurance regarding payment reliability and counterparty stability. This contracted revenue foundation immediately accrets to Excelerate Energy’s earnings per share and substantially enhances operating cash flow generation.

Strategic Positioning in High-Demand Atlantic Basin Market

The acquisition positions Excelerate Energy as the critical infrastructure provider for natural gas transition in Jamaica and the broader Atlantic Basin. Jamaica’s energy market increasingly turns toward cleaner fuels, with natural gas becoming integral to industrial operations and the power generation sector. The company’s existing 0.7 MTPA Venture Global LNG supply agreement aligns seamlessly with the Jamaica assets’ consumption profile, effectively eliminating commodity risk while ensuring reliable supply fulfillment.

The two-terminal structure creates a structural advantage, allowing Excelerate to serve diverse customer segments including power plants, industrial users, and potentially marine bunkering applications. The geographic proximity to abundant US Gulf Coast LNG supplies provides competitive cost advantages against alternative sourcing models, reinforcing the platform’s economic resilience.

Immediate Growth Runway Beyond Base Case

Management has identified multiple organic expansion vectors leveraging existing infrastructure without substantial incremental capex. The Clarendon facility presents opportunities to expand power generation capacity, potentially doubling current output to address Jamaica’s anticipated electricity demand growth. LNG bunkering services represent another revenue stream, capitalizing on Caribbean maritime traffic patterns and the industry’s accelerating shift toward cleaner marine fuels.

Incremental gas supply expansion targeting Jamaica’s industrial base aligns with the ongoing energy transition away from petroleum products toward natural gas utilization, creating tailored growth prospects in an underserved market.

Transaction Structure and Timeline

Excelerate Energy intends to finance the $1.055 billion purchase through a combination of permanent debt financing and available cash reserves. The company has secured an $850 million fully committed bridge facility to backstop the transaction structure. Both companies’ boards unanimously approved the deal, with expected close targeted for the second quarter of 2025, pending standard regulatory approvals and customary closing conditions.

The acquisition fundamentally transforms Excelerate Energy’s operational footprint, extending its global LNG infrastructure presence while establishing dominance in a strategically important Atlantic Basin market positioned for sustained energy transition-driven growth.