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Energy Law Exchange

August 10, 2020

Private Investment Opportunities in LNG-to-Power


On Tuesday, July 14, King & Spalding LLP and Gas Strategies co-hosted a webinar regarding private investment opportunities in the LNG-to-Power sector, moderated by King & Spalding partners Monica Hwang and Nikhil Markanday. This webinar focused on three primary topics of discussion: (i) the case for private investment in the LNG-to-power space; (ii) case studies of successful private investment in the LNG-to-power market; and (iii) the challenges and financing of LNG-to-power.

            First, Chris Levell, managing consultant with Gas Strategies, predicates that private equity players are well suited for spurring new LNG-to-power developments as these firms generally have a higher risk appetite as well as the ability to leverage their development, operation, and relationship expertise. In addition, because private equity firms tend to be more focused on building a business rather than just developing a project, such firms are uniquely well placed to take advantage of opportunities within this market sector.

            Next, Sean Lalani, President at Eagle LNG Partners; Ogbemi Ofuya, partner at Helios Investment Partners; and James Wyper, Senior Managing Director at Stonepeak Infrastructure Partners, each shared their respective experiences investing in the LNG-to-Power sector. Sean shared how Eagle LNG is focused on developing end-to-end LNG solutions for small scale export and domestic consumption in conjunction with its small-scale LNG export project in Jacksonville, Florida. Ogbemi Ofuya described his experience with Helios Investment Partners, which is currently constructing the Tema LNG Terminal in Ghana. The Tema LNG terminal will be the first operational LNG import terminal in sub-Saharan Africa and provide opportunity for industrial mines, power plants and other industrial users to switch from heavy liquid fuels to cleaner-burning LNG and thereby achieve efficiencies from both an economic and environmental perspective. Finally, James Wyper discussed Stonepeak Infrastructure Partners’ joint venture arrangement with Golar LNG to develop the largest thermal power station in Brazil. The project recently achieved commercial operations, and the joint venture partners now plan to expand LNG application in that jurisdiction and establish the LNG import terminal as a gas hub. 

            For the final segment, Haran Sivam, Principal Investment Officer in the Global Energy Group of the International Finance Corporation (IFC), the private sector arm of the World Bank Group, discussed IFC’s financing products. Haran echoed the sentiments of the other panelists that gas demand is scarcer than supply and a constant challenge to developing more demand is capital constraint. To illustrate how IFC can provide solutions to the capital constraint challenge, he described two projects in Brazil and Pakistan which were funded in part by IFC.

            A recorded version of the webinar is available at https://kslawemail.com/322/6849/pages/rsvp-blank.asp?sid=a971726d-fa64-4c6b-9ea7-c24f6f54fe00.  Any questions regarding the topics discussed in the webinar may be directed Monica Hwang at mhwang@kslaw.com or Nikhil Markanday at nmarkanday@kslaw.com.

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