Golar LNG has completed the sale of a 50% interest in Golar Power to private equity firm Stonepeak Infrastructure Partners for $116m.
Stonepeak has also subscribed to $100m in Golar Power’s preference shares and has committed to $75m in additional equity.
Golar LNG will also contribute $75m in additional funding to the joint venture (JV) by early 2018.
“After settlement of transaction related fees and Golar’s contribution to the working capital of Golar Power, approximately $104m will be added to Golar LNG Limited’s liquidity,” the NASDAQ-listed company said.
Golar Power was established in May to refocus Golar LNG’s activities on floating LNG (FLNG) and downstream projects rather than shipping. The new company will participate in a power station project in Sergipe, northeastern Brazil.
In September last year, Golar announced it had negotiated rights to take up to 25% equity in the Sergipe project, which is backed by a 1.5-GW combined-cycle gas-fired power plant and has been awarded a power provider agreement (PPA) by the Brazilian government. Golar has the exclusive right to provide a floating storage regasification unit (FSRU) to the proposed project.
The conclusion of the Stonepeak deal will help fully finance the conversion of two LNG carriers to FSRUs, fund delivery of a new FSRU in 2017 and complete the financing of Golar LNG’s share of the Sergipe Power project.
Around $214m in ship mortgage debt and $217m of remaining newbuilding CAPEX on the FSRU is expected to be transferred to Golar Power from Golar LNG.
The JV company expects to execute the contracts for the first LNG carrier conversion “shortly”.