NorthStar HoldCo Energy, LLC (NorthStar), a portfolio company of funds managed by Oaktree Capital Management, L.P. (Oaktree), is pleased to report that the expansion of JAX LNG and the construction of the 5400 m3 LNG articulated tug barge unit (ATB), Clean Canaveral, continue as expected towards being in service by 4Q2021. In addition, NorthStar recently closed on a US$137 million debt financing facility to support these LNG expansions.
NorthStar and its partner at JAX LNG, Pivotal LNG, a subsidiary of BHE GT&S, are tripling the facility’s production capability to 360 000 gal./d and doubling LNG storage capacity to 4 million gal. The JAX LNG facility has been in service since the 4Q2018 and, through its integrated LNG marine loading dock, JAX LNG has safely completed more than 150 deliveries of LNG to the Clean Jacksonville bunker barge. JAX LNG has also been servicing additional customers in the shipping, over-the-road trucking and aerospace segments.
“With the excellent support we have from our construction contractors, we are excited to commence our expanded operations, particularly for our new anchor customer beginning its LNG-powered voyages in 2022,” said Tim Casey Senior Vice President – LNG for NorthStar. “The expansion of JAX LNG and the construction of the Clean Canaveral will allow us to supply our existing customers, take on new customers, and deliver LNG to points anywhere from Savannah, Georgia to Miami, Florida. The market for LNG as a bunker fuel is accelerating as more LNG powered ships are put into service. JAX LNG and Polaris New Energy are prepared to support the shipping industry’s important effort to reduce its carbon footprint by using LNG, an environmentally friendly fuel that can reduce greenhouse gas emissions by over 20%.”
Last week, NorthStar, through a newly formed entity, Seaside LNG Holdings, LLC, closed on a US$137 million debt financing facility supporting its interest in JAX LNG and Polaris New Energy. Proceeds from the financing will be used to fund construction of the JAX LNG expansion and the ATB.
“We are pleased to have the project finance community support our growth. Our lenders recognise the critical importance of LNG in the maritime sector and share in NorthStar’s excitement as a first-mover in LNG bunkering domestically. The financing facility provides the flexibility to stay at the forefront of these segments as we look toward future growth opportunities,” explained Matt McKenzie, Senior Vice President – Finance and Administration of NorthStar.
Read the article online at: https://www.lngindustry.com/special-reports/19032021/northstar-reports-on-expansion-project-progress/