German utility to acquire 50-percent stake in leading LNG innovator
February 14, 2008
THE WOODLANDS, TEXAS — Excelerate Energy L.L.C. today announced that the RWE Group has signed an agreement to acquire a 50-percent stake in the company for approximately $500 million. RWE is a major European integrated electricity and natural gas company, and the partnership will combine RWE’s upstream equity gas assets with Excelerate’s growing market access points, LNG infrastructure, and proprietary technology.
“Together, we believe we can grow the LNG business significantly over the coming years,” said Rob Bryngelson, President and Chief Executive Officer of Excelerate Energy. “This partnership aligns both companies’ strengths in a way that will support the growth of the business, enable us to more fully leverage the flexibility our technology provides along the LNG value chain and to maintain our innovative leadership in offshore LNG.”
Excelerate Energy, owned by George B. Kaiser, was formed in 2003 to utilize proprietary technology allowing LNG to be regasified onboard specially designed regasification vessels. Based on this technology and in the five short years since its inception, the company has built three LNG receiving facilities, including the first on the US East coast in 25 years; pioneered commercial ship-to-ship transfer of LNG; and has options to expand its portfolio of regasification vessels to eight.
RWE AG is the listed holding company of the RWE Group, which operations are focused on Germany, the United Kingdom, and Central Eastern Europe. The company’s activities include power generation, distribution, transmission and sales, and natural gas exploration, production and sales. RWE Gas Midstream, the non-regulated gas wholesale, transport, and storage subsidiary, will cooperate with Excelerate on an operational level.
Dr. Juergen Grossmann, CEO of RWE AG: “Linking Excelerate’s business with RWE’s gas activities provides a platform for strong growth in the gas market. We are active both in the pipeline and the LNG business. Our partnership is of strategic importance.” RWE and Excelerate have been co-operating on a number of joint projects since 2006.
Mr. Kaiser will continue to own the remaining 50 percent of the company. Excelerate Energy’s management and staff will remain in place as the company will continue to develop and operate its business as usual, with strong support from its shareholders.
About Excelerate Energy
Excelerate Energy, L.L.C., based in The Woodlands, Texas, is a liquefied natural gas (LNG) importer and marketer that is redefining the way LNG moves around the globe. With the proven ability to apply its proprietary regasification technology to a growing network of market access points worldwide, Excelerate Energy can connect LNG suppliers and customers in a way that minimizes costs for both while maximizing the value of each delivery. Excelerate Energy’s fleet of state-of-the-art, environmentally friendly, LNG Regasification Vessels (LNGRVs) compliment the company’s downstream investments in dockside GasPorts and deepwater port Gateways. To further enhance the capabilities of the existing LNGRVs and their cargoes, Excelerate Energy has developed and implemented the first commercially viable program of LNG transshipment via ship-to-ship transfer. This combination of expertise, innovation, and strategic physical assets give the company the equivalent of a flexible, global “pipeline” that can transport LNG from virtually any point to any other point facilitating delivery to the highest value markets around the world. For more information, please visit www.excelerateenergy.com
About RWE Gas Midstream
With RWE Gas Midstream GmbH, which was founded on 1 January 2007, RWE has further improved its competitive position in the European gas market. RWE Gas Midstream is responsible for the economic optimisation of the entire, non-regulated gas business of the RWE Group with respect to procurement, transport and storage. To fulfil its remit, the company is intensifying existing business contacts to pipeline and LNG providers and is developing new procurement options taking into full account the strong growth of the gas exploration and production business of RWE Dea. The establishment of RWE Gas Midstream strengthens the entire RWE gas portfolio. RWE Trading remains responsible for the gas trading activities and for their further development. RWE has already announced that RWE Gas Midstream and RWE Trading will merge.