Home Initial Public Offering Fortress Investment Group Expands Liquid Natural Gas Projects Ahead of IPO

Fortress Investment Group Expands Liquid Natural Gas Projects Ahead of IPO

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Fortress Investment Group Expands LNG Projects
Fortress Investment Group Expands Liquid Natural Gas Projects

On November 9, 2018, New Fortress Energy officially filed for its initial public offering (IPO) on the NASDAQ. The company was originally created in 2014 by the Fortress Investment Group. Since it was founded, it has become a leading gas-to-power company. The new IPO is expected to raise as much as $100 million for New Fortress.

The American company initially focused on supplying natural gas and infrastructure needs in Jamaica, but it has rapidly grown over the last few years. On November 13, 2018, the natural gas company declined to comment on when the IPO will actually hit the marketplace. According to American law, there is a quiet period before an IPO actually takes place.

New Fortress is run by Wes Edens and faces strong growth prospects. Other than three terminals in Jamaica, the company has three terminals in development within Mexico, Puerto Rico and Ireland. The Jamaican terminals are fed by a liquefaction manufacturing facility operated by New Fortress in Miami, Florida. By 2023, New Fortress expects to have 10 additional liquefaction facilities.

Fortress Investment Group Has New Development Projects Underway in Mexico

New Fortress Energy is embarking on a range of new investment projects. One of the upcoming projects is in Mexico’s Baja California Sur. The energy infrastructure developer was granted a long-term contract for constructing, developing and operating the terminal within the port of Pichilingue. This new terminal will be completely dedicated to importing liquefied natural gas.

In total, the new project is worth $184 million. It was awarded by the Port Authority of Baja California Sur on July 19, 2018. While the company has not set an exact date yet, the work is expected to begin in 2020. Once the terminal is completed, it will be the first natural gas supply to ever exist within Baja California Sur. Because of the new terminal, power plants in the area can cut energy costs by as much as 30 percent. Throughout the development process, the company plans on partnering with local communities, industries and officials.

Over the last year, the gas company has diligently worked to expand into new markets. In August 2018, the company announced the Pichilingue terminal. The Shannon LNG plant was announced just two weeks later.

The company’s first natural gas project was in 2016. At the time, New Fortress was contracted by a Jamaican power company, JPS, to provide a power station on the north side of Jamaica. The Montego Bay facility was designed to be a 120-MW station.

To carry out the project, New Fortress Energy partnered with Golar LNG to charter the Golar Arctic for floating storage services. Because of Jamaica’s continuing interest in natural gas, the Golar LNG partnership will last for at least the next 15 years. From the Golar Freeze’s tanks, gas is piped to the Old Harbour Bay power plant. Gas is also brought to the Bogue power station. Once a new plant is finished in Clarendon, the same piping services will supply the Clarendon station.

Bringing Clean Energy to Ireland’s County Kerry

New Fortress Energy is also starting two major projects in Ireland. Recently, the company agreed to purchase a location at Ballylongford. The location within Ireland’s County Kerry will be the site of a new receiving terminal for liquefied natural gas.

The new facility is expected to cost $581 million to build. The company has already received the right planning permission for the project. Dubbed Shannon LNG, this project has been in the works for several years. It was only recently that the conditions became just right for such an investment to happen.

Shannon LNG is possible because of a few changes in the United Kingdom and the European Union. The European Commission is pressuring member countries in the European Union to use clean-burning fuels for electricity. This pressure to use gas instead of coal is a part of the region’s rigorous environmental regulations.

The deal was also helped by the imminent exit of the United Kingdom from the European Union. With a “hard Brexit” looking increasingly likely, the United Kingdom is going to pay more for its pipeline supplies. Since the United Kingdom is currently the only source of natural gas for Ireland, this could clearly become an expensive problem.

This project will eventually include four storage tanks and a capacity for processing 3 million tons of gas per year. The company also has planning permission to add a gas-fired power plant adjacent to this location. Ultimately, the finished terminal will be located on the southern side of the Shannon Estuary.

Jamaican Children Receive $4.5 Million From the Fortress Investment Group

The energy infrastructure company also made news for a recent donation to education and youth development in Jamaica. RISE Life Management Services was given more than 4.5 million Jamaican dollars. This money is important for supporting social programs in the community and at-risk youth. Most of the programs will focus on children and young adults in downtown Kingston.

The added support is important for RISE Life in another way as well. Because of the funding, RISE Life has met a funding requirement from the European Union. By meeting the minimum requirement of outside funding, the organization can now access grants worth more than $700,000.

With the new funding sources, the organization can continue to work to reduce suicide rates, depression and delinquency rates on the island. Across the country, new prevention and treatment options will be put into place. Over time, these programs will help prevent child abuse and help youth with social issues.

In Jamaica, there have been 44,782 cases of child abuse in the last six years. Part of the new funding will help RISE Life to educate children about appropriate behaviors and when to get help. The organization will be able to treat at-risk youth who have suffered from abuse or attempted abuse.

A Track Record of Success

Originally, the Fortress Investment Group was founded by Wes Edens in 1998. The firm initially began with $400 million and only 30 employees. Now, the organization has 1,200 employees and $72 billion in assets. It provides investment strategies to private clients and institutional investors from around the world.

Over the years, Edens has developed a reputation for expanding the companies that he invests in, manages or purchases. These investments range from the sports industry to developing infrastructure. The investment fund initially became interested in the Jamaica Liquefied Natural Gas project because of the regulatory framework and legal framework available within the country. Then, the organization began converting the country from burning dirty fuels to using natural gas. Hopefully, this project will become an example of clean, affordable energy for the rest of the region.

With an IPO of $100 million just around the corner, New Fortress is poised for another excellent year. The company’s ongoing investments in infrastructure have already started to pay off. With more terminals in development, this will certainly be an IPO to watch this year.

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