Acquisition a global LNG shipping, supply & regasification portfolio
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
Transaction summary
- 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
Outcome
- 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