New Fortress posts US$472m gain from Ja exit
Published:Friday | September 12, 2025 | 12:08 AM
Natural gas supplier New Fortress Energy, NFE, earned 60 cents on every dollar invested in Jamaica in the buildout, operation, and eventual divestment of the majority of the country’s LNG infrastructure.
“The book value of the Jamaica business at the time of sale was US$575.4 million, and the company recognised a gain of US$472.7 million during the six months ended June 30, 2025,” New Fortress said in its newly released financial report.
Despite the gain, the wider group – which operates in the United States, Mexico, Brazil, Puerto Rico, Nicaragua, and Ireland – reported net losses exceeding US$557 million for the second quarter ended June.
“On May 14, 2025, we completed the sale of our Jamaica business, including operations at the LNG import terminal in Montego Bay, the offshore floating storage and regasification terminal in Old Harbour, and the 150-megawatt Combined Heat and Power Plant in Clarendon, along with the associated infrastructure,” New Fortress stated.
Jamaica had generated over US$100 million annually in profit for New Fortress and marked the launch pad for its regional gas ambitions. However, the company sold its local assets to reduce leverage, with liabilities totalling US$10.6 billion against US$12 billion in assets as of June.
The sale eased short-term debt pressure, but total debt still rose slightly to US$8.96 billion, up from US$8.89 billion in December 2024.
Losses at New Fortress were driven by impairments, financing costs, and restructuring charges. Total revenues fell to US$302 million in the second quarter, down from US$428 million a year earlier.
The company’s capital also declined to US$1.3 billion from US$1.9 billion.
The deal with Excelerate Energy Inc for the Jamaican assets was valued at US$1.05 billion in cash. After bond repayments, transaction costs, and other obligations, New Fortress netted US$678.5 million, with an additional US$98.6 million held in escrow.
Excelerate Energy, which is also in the LNG business, has said it intends to use Jamaica as a launch pad into the region.
Jamaica’s path to liquefied natural gas has spanned decades of ambition, stalled negotiations, and eventual private-sector intervention. The initial efforts began in the early 2000s, with considerations over Colombian-backed pipeline infrastructure and supply arrangements with Trinidad & Tobago. Despite high-level talks, none of the regional partnerships materialised.
The turning point came in 2015 when New Fortress Energy, then a one-year-old start-up, entered the Jamaican market with a multipronged strategy – building not just LNG import terminals, but also power plants, pipelines, and regasification infrastructure. This vertically integrated model addressed many of the logistical and investment gaps that had hindered previous efforts.
New Fortress’ LNG supply operations kicked off in 2016 with large fuel customer Jamaica Public Service Company, and eventually grew to incorporate various businesses.