Apollo Explores Sale of LNG Operator Energos in Deal Potentially Valued Over $3 Billion, Sources Say

Apollo Global Management is exploring strategic options for its floating liquefied natural gas (LNG) infrastructure provider, Energos Infrastructure, in a transaction that could value the company at over $3 billion, according to people familiar with the matter.

The investment firm has been in discussions with potential buyers in recent weeks, indicating it is open to either a full or partial sale of the business, the sources said.

The Potential Deal

Among the prospective bidders is XRG, the international investment arm of the Abu Dhabi National Oil Company, which has reportedly considered an offer for a stake of up to 50% in Energos. The sources, who requested anonymity to discuss confidential deliberations, cautioned that discussions are ongoing and that no deal is guaranteed.

Apollo and XRG declined to comment on the matter. Energos Infrastructure did not respond to a request for comment. Energos was formed by Apollo and New Fortress Energy in 2022, with Apollo acquiring New Fortress's 20% stake to take full ownership in January 2024.

Strategic Importance of Floating LNG

Energos operates a modern fleet of floating LNG assets, which provide a flexible and faster alternative to traditional onshore import terminals. These facilities can be deployed more quickly and at a lower cost, enabling countries to import natural gas for power generation and industrial use without the long lead times and significant land requirements of permanent infrastructure.

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The Stamford, Connecticut-based company's portfolio includes:

• 13 floating LNG vessels in total
• 9 floating storage and regasification units (FSRUs)
• 2 floating storage units
• 2 LNG carriers

According to its website, Energos's assets are deployed under long-term contracts in global markets including Brazil, Egypt, Indonesia, Mexico, and the Netherlands.

Context for Bidders

A potential investment in Energos aligns with the strategic goals of firms like XRG, which is actively expanding its global natural gas and chemicals portfolio. XRG has a stated goal of building an integrated global gas and LNG business with a capacity of up to 25 million tons per annum (mtpa) by 2035.

This year, XRG has already expanded its footprint in the sector by acquiring an additional stake in the Rio Grande LNG project in Texas and partnering with Italy's Eni to purchase minority stakes in upstream blocks in Argentina that are linked to a future LNG project.