Energy infrastructure company New Fortress Energy said on Wednesday it would buy Hygo Energy Transition for $2.18 billion to expand its presence in Brazil, as South America’s largest market opens its natural gas industry to private investors.
Hygo is a 50-50% joint venture between Golar LNG and U.S. private equity firm Stonepeak Infrastructure Partners. The company transports liquefied natural gas (LNG) and has become a key player in the Brazilian industry as the local state-controlled company Petrobras sells assets to end what five years ago was a near monopoly in natural gas.
New Fortress also agreed to buy Golar LNG Partners LP for about $251 million, or $3.55 per common unit, in cash. The company has also agreed to acquire Golar LNG Partners’ general partner, with a total enterprise value of $1.9 billion.