ship.energy

NorthStar closes $137 million debt financing facility

NorthStar HoldCo Energy (NorthStar), a portfolio company of funds managed by Oaktree Capital Management (Oaktree), has closed on a $137 million debt financing facility to support its interest in JAX LNG and Polaris New Energy.

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 gallons per day and doubling LNG storage capacity to four million gallons.

As previously reported by ship.energy’s sister publication Bunkerspot, the JAX LNG facility has been in service since the fourth quarter of 2018 and, through its integrated LNG marine loading dock, JAX LNG has completed more than 150 deliveries of LNG to the Clean Jacksonville bunker barge.

‘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.

In August 2019, it was announced that Fincantieri Bay Shipbuilding was to build 5,400 cbm articulated tug barge (ATB) to provide LNG bunkering solutions to NorthStar Midstream’s customers. Construction on the vessel, named Clean Canaveral, began last July.

‘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,’ said Casey, who also highlighted the ‘accelerating’ market for LNG as a bunker fuel as more LNG powered ships are put into service.

Commenting on the new $137 million debt financing facility, Matt McKenzie, Senior Vice President – Finance and Administration of NorthStar, said: ‘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.’

McKenzie added: ‘The financing facility provides the flexibility to stay at the forefront of these segments as we look toward future growth opportunities.’

Rhys Berry

Rhys Berry