Acquisition a global LNG shipping, supply & regasification portfolio

Acquisition a global LNG shipping, supply & regasification portfolio

Acquisition a global LNG shipping, supply & regasification portfolio

case study 12

M&A Transactions – Gas & LNG

The Engagement:

Commercial Due Diligence

Global LNG portfolio of long term supply contracts, shipping and downstream offtake

The Client:

Major Global Asset Manager

Duration:

6 months

How Energex helped:

  • Our client was seeking an entry into the global LNG market, with access to diversified, long-term contracted volumes of LNG, logistics and downstream supply outlets
  • Energex originated an investment opportunity with an international energy company considering an exit from their LNG portfolio
  • The portfolio consisted of multiple 20-year supply contracts totalling almost 5 million tonnes per annum of LNG supply, time charter contracts for LNG carriers and a portfolio of regasification contracts and multi-year wholesale supply contracts to industrial users in two continents

Tangible Impact:

  • Energex negotiated a period of exclusivity for bi-lateral negotiations between both parties
  • Facilitated all discussions and negotiations between both parties
  • Particular focus on transaction structure – profit sharing, earn-outs, JV – and credit arrangements to underpin the portfolio post-transaction
  • Provided commercial due diligence on the portfolio,  valuation analysis on LNG contracts and long-term forecasting of LNG flows
  • The transaction did not finally close owing to issues with deal structure