Texas-based firm to become new owner of LNG export facility in Florida

U.S. investment manager Pennybacker Capital Management has been revealed as the unnamed middle-market infrastructure fund acquiring a liquefaction and storage facility in Miami from New Fortress Energy (NFE), a compatriot energy infrastructure player.

New Fortress Energy announced a definitive agreement with an undisclosed company a few days ago for the sale of its Miami liquefaction and storage facility, which is said to be Florida’s first privately owned liquefied natural gas (LNG) plant and the first to export LNG from the continental United States to a non-free trade agreement (non-FTA) country.

Pennybacker has confirmed that it will acquire this small-scale LNG business without disclosing any financial details. The transaction is still expected to close in the third quarter of 2024, subject to customary terms and conditions.

Tim Berry, Founder, CEO, and Co-CIO of Pennybacker, remarked: “This transaction exemplifies Pennybacker’s unparalleled ability to identify and execute on investment opportunities through both the strength and relationships of our investment team and use of data analytics throughout the underwriting process, resulting in significant value creation for our investors throughout the lifecycle of the investment.”

The Miami-based business encompasses a small-scale liquefaction facility capable of producing 8,300 MMBtu of LNG per day with an onsite storage capacity of about 1,000 cubic meters. The facility, which can load LNG into both truck and rail, has permission to export LNG to FTA and non-FTA countries.

Sam Warfield, Managing Director and Head of Critical Infrastructure at Pennybacker, commented: “We look forward to working with the Miami LNG Team to continue serving its existing customers, as well as growing the platform to provide cost effective and sustainable LNG solutions to new U.S. and Caribbean customers.”

Authorized to export up to 60,000 tonnes per annum of LNG, the Miami liquefier, commissioned in 2015, is perceived to be optimally located to supply LNG to transportation, commercial, and industrial users in South Florida and the Caribbean.

NFE’s divestment of Miami LNG follows the sale of its 20% equity interest in Energos Infrastructure. Meanwhile, New Fortress Energy’s delivery of the first LNG cargo from a floating LNG (FLNG) facility off the coast of Altamira is due this month.