Blackstone unit acquires 49% stake in US LNG facility
25 May 2022
Blackstone Inc's credit investment unit, Blackstone Credit, on Friday said it has bought a 49 per cent stake in a liquefied natural gas (LNG) facility in Georgia from private equity firm EIG Global Energy Partners.
The current operator of the pipeline, Kinder Morgan, will continue to hold the remaining 51 per cent of Elba Liquefaction Company. Terms of the deal are yet to be disclosed.
Blackstone Credit’s acquisition of stake in the company comes amidst soaring demand for US LNG as western sanctions on Russian fuel squeeze supply.
Elba Liquefaction Company (ELC) is an LNG liquefaction facility located near Savannah, Georgia. ELC began full commercial operations in August 2020 and is comprised of 10 Movable Modular Liquefaction Units with a nameplate capacity of approximately 2.5 million tonnes per annum of liquefied natural gas (LNG) for export, which is equivalent to approximately 350 million cubic feet (MMcf) per day of natural gas. ELC generates stable cash flow under a 20 year contract (plus extension rights) with an investment grade counterparty, providing long duration income to its owners.
Kinder Morgan, Inc is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. It has interest in or operate approximately 83,000 miles of pipelines, 141 terminals, and 700 billion cubic feet of working natural gas storage capacity. Its pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, while the terminals store and handle various commodities including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke.
JP Morgan Securities LLC acted as exclusive financial advisor and Milbank LLP served as Blackstone Credit’s legal counsel on the transaction.