Apollo Global Management is exploring strategic options for Energos Infrastructure, its floating liquefied natural gas operator, in a deal that could value the company at more than $3 billion. XRG, the international investment arm of Abu Dhabi National Oil Company, is among the bidders reportedly weighing a stake of up to 50%.
Apollo Global Management is exploring strategic options for Energos Infrastructure, in a deal that could value the floating liquefied natural gas infrastructure provider at more than $3 billion, people familiar with the matter told Reuters. The investment giant has held talks in recent weeks with prospective bidders about a full or partial sale.
XRG, the international investment arm of Abu Dhabi National Oil Company, is among the potential bidders, with an offer that would see it take a stake of up to 50% in Energos, the sources said. The sources cautioned that no deal was a possible outcome and spoke on condition of anonymity to discuss private deliberations. Apollo and XRG declined to comment, and Energos did not respond to a request for comment.
What Energos operates
Floating natural gas infrastructure lets importers bring in LNG for power generation and other commercial uses without building large onshore facilities, which can be costly and take years to construct. Stamford, Connecticut-based Energos runs 13 floating LNG vessels, including nine used for storage and regasification, two storage units, and two LNG carriers. Its assets operate under long-term commercial arrangements in Brazil, Egypt, Indonesia, Mexico, and the Netherlands, according to its website.
XRG's wider LNG push
XRG has been eager to invest in the LNG industry as part of its push to acquire natural gas and chemicals assets outside the United Arab Emirates. It aims to build an integrated global gas and LNG business with as much as 25 million tons per annum of capacity by 2035, according to its website.
So far this year, XRG has bought an additional 7.6% stake in two LNG trains at the Rio Grande LNG project in Texas. It has also joined Italy's Eni to buy minority stakes in three upstream blocks in Argentina linked to an LNG project in the South American country.
Source: Investing.com
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