Apollo explores sale options for floating LNG infrastructure operator Energos, sources say

• Apollo is open to either a full or partial sale of Energos, which operates 13 floating LNG vessels deployed in Brazil, Egypt, Indonesia, Mexico, and the Netherlands
• XRG is exploring a stake of up to 50% as part of its strategy to build an integrated global gas and LNG business with 25 million tons per annum capacity by 2035
• Apollo formed Energos with New Fortress Energy in 2022 and acquired New Fortress's 20% stake in January 2024

Apollo Explores Sale of Energos Infrastructure in $3+ Billion Deal

Apollo Global Management is pursuing strategic options for Energos Infrastructure, its floating liquefied natural gas (LNG) infrastructure operator, in a transaction potentially exceeding $3 billion valuation, according to sources familiar with the matter.

Key Transaction Details:

• Apollo is open to either a full or partial sale of Energos
• XRG, Abu Dhabi National Oil Company's international investment arm, emerged as a potential bidder for up to a 50% stake
• Sources cautioned no deal is certain at this stage

About Energos:

The Stamford, Connecticut-based company operates 13 floating LNG vessels globally, including nine storage and regasification units, two storage units, and two LNG carriers. Assets are deployed under long-term commercial arrangements across Brazil, Egypt, Indonesia, Mexico, and the Netherlands.

Apollo established Energos with New Fortress Energy in 2022, then acquired New Fortress's 20% stake in January 2024, gaining full ownership.

Strategic Rationale:

Floating LNG infrastructure enables natural gas imports for power generation without expensive, time-consuming onshore facilities requiring extensive land development. For XRG, this investment aligns with its expansion strategy to build an integrated global gas and LNG business targeting 25 million tons per annum capacity by 2035.

XRG's LNG Expansion:

This year alone, XRG acquired an additional 7.6% stake in two LNG trains in Texas and partnered with Italy's Eni to purchase minority stakes in a South American LNG project.

Market Implications:

The potential transaction highlights growing institutional interest in LNG infrastructure assets amid global energy transition dynamics and increasing natural gas demand in emerging markets.