Freeport LNG uses all-electric drives to power the facility, reducing factory emissions by more than 90%. (Photo: Freeport LNG)
Freeport LNG uses all-electric drives to power the facility, reducing factory emissions by more than 90%. (Photo: Freeport LNG)
New York and Houston--(BUSINESS WIRE)--Global Infrastructure Partners ("GIP"), a leading independent infrastructure investor, today announced an agreement to sell its 25.7% stake in Freeport LNG Development, LP ("Freeport") The purchase price for JERA Americas Inc. is US$2.5 billion, subject to adjustments based on customary purchase prices. Global Infrastructure Partners II, GIP's second flagship fund, acquired the shares in 2015.
JERA Americas Inc. ("JERA Americas") is a US subsidiary of JERA Co., Inc. ("JERA"), a global energy leader, and JERA Co., Inc. is the world's largest buyer of liquefied natural gas ("LNG") . JERA, through its subsidiaries, owns 25% of Freeport LNG Train 1, and purchases and transports 2.32 mtpa of LNG for use in Japan and other LNG importing countries. The completion of the transaction is subject to customary regulatory approval and completion conditions.
Freeport owns and operates an LNG export facility on Quintana Island near Freeport, Texas. In May 2020, Freeport completed the construction of the third of its three liquefaction production lines. The total output of these production lines exceeds 15 tons/year, and is based on long-term contracts with top offtakers. Today, Freeport is the seventh largest LNG facility in the world, the second largest LNG facility in the United States, and the only facility in the United States that uses electric motor drive technology. Compared with similar gas turbine-driven facilities, carbon dioxide emissions are reduced by 90%. Freeport is seeking multiple value-added growth opportunities throughout the LNG value chain, including the fully permitted and ready expansion of Train 4.
Freeport Chairman, CEO, Founder and Major Shareholder Michael Smith said: "As global energy demand continues to grow, the world is promoting a low-carbon future; we are fortunate to play a leading role in achieving these two goals. We Liquefy Clean U.S. natural gas with cost advantages provides energy security for major allies such as Japan, while reducing emissions by using our electric motors and replacing coal. Since 2015, GIP has been a valuable partner and contributed their expertise And relationship. We look forward to success with JERA, which is already Freeport’s main partner and offtaker, and we are happy to let them play a greater role in our evolving LNG platform."
Adebayo Ogunlesi, Chairman and Managing Partner of GIP said: "We are very proud to be able to work with Michael Smith to transform Freeport from a regasification facility into a leading LNG export platform, which will help drive industrial growth and development. With it With agility and entrepreneurial spirit, Freeport is constantly innovating and looking for ways to provide more LNG to consumers around the world with lower carbon intensity. We congratulate JERA Americas for participating in the next phase of Freeport’s growth."
Steven Winn, CEO of JERA Americas, said: "Increase our ownership position in Freeport not only provides JERA Americas with extremely cost-competitive liquefied natural gas, which can be used to ensure a stable supply to the global market. Some efforts initiated to achieve clean energy goals. As we witness the sharp rise in global prices, ensuring a stable supply of liquefied natural gas has become more and more important. We will use the knowledge and knowledge accumulated in JERA's global liquefied natural gas value chain business and power plant operations Professional knowledge, various business cooperation with Freeport, to meet the growing power demand of Asian countries, and to help promote the transition from coal to low-emission fuel LNG."
Freeport LNG is a LNG export company headquartered in Houston, Texas. The company’s three-row 15 metric ton liquefaction facility is the seventh largest in the world and the second largest in the United States. Freeport LNG’s liquefaction facility is the world’s largest all-electric drive motor plant of its kind, making it the most environmentally friendly and sustainable plant Its kind. Compared with gas turbine-driven liquefaction facilities, the facility’s electric motors have reduced carbon emissions by more than 90%. Freeport plans to expand by adding a fourth liquefied train, which has been approved by all regulatory agencies for construction. Freeport was established in 2002 to develop, own and operate an LNG terminal on Quintana Island near Freeport, Texas. The terminal started LNG import business in June 2008, and started LNG export business in 2019. More information can be found on the Freeport website www.freeportlng.com.
Global Infrastructure Partners is an independent infrastructure fund management company that makes equity and debt investments in infrastructure assets and businesses. The goal of GIP is to invest in the energy, transportation and water/waste sectors of the OECD and selected emerging market countries. The GIP team is distributed in 10 offices: London, New York, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP's credit platform provides financing solutions and makes debt and non-common equity investments in infrastructure assets and companies. For more information, please visit www.global-infra.com.
JERA Americas, headquartered in Houston, is a leading integrated energy supplier, supporting the energy transition in the Americas in an environmentally and socially responsible manner. As a subsidiary of JERA, JERA is the world's largest LNG buyer and 30% of Japan's electricity supplier. JERA Americas is supporting the "JERA Zero CO2 Emission 2050" goal, that is, achieving zero CO2 emissions from its business by 2050. JERA, representing the vision of Japan's energy in the new era, is to contribute to the development of a sustainable society and become a global company that deserves the attention of the global energy market and is indispensable to the people of the world. For more information, please visit www.jera.co.jp/english/.
Rothschild & Co and Mizuho Securities USA LLC acted as joint financial advisors, and Simpson Thacher & Bartlett LLP acted as legal counsel to GIP. Goldman Sachs & Co. LLC acted as financial advisor to JERA Americas, and Sidley Austin LLP acted as legal advisor to JERA Americas.
GIP media contact mediainquiries@global-infra.com 1.646.282.1545 CLP Strategies ppendleton@clpstrategies.com 1.914.364.8024 JERA media contact JERA Americas PR@jeraamericas.com
Global infrastructure partners announce their agreement to sell the interest in Freeport LNG to JERA Americas for US$2.5 billion
GIP media contact mediainquiries@global-infra.com 1.646.282.1545 CLP Strategies ppendleton@clpstrategies.com 1.914.364.8024 JERA media contact JERA Americas PR@jeraamericas.com