Fengate acquires Australian power station
Fengate has reached financial close on Exmouth Power Station, the second Australian investment to be added to the firm’s infrastructure portfolio. Greg Osborne, Managing Director of Infrastructure, Asia-Pacific, led the AUD $19.62 million equity investment out of Sydney, Australia. The contract includes a Power Purchase Agreement with Horizon Power, a Gas Sales and Purchase Agreement with each of Quadrant Northwest Pty. Ltd. and KUFPEC Australia Pty. Ltd. and an Operations and Maintenance Agreement with Transfield Worley Power Services Pty. Ltd. Fengate was advised by RFC Ambrian, one of the leading corporate advisory groups in the small-mid cap natural resources sector, throughout the investment process.
“Exmouth Power Station provides Fengate with the opportunity to work with experienced and credit worthy counterparties in the Australian market while providing predictable, long-term cash flows for our investors. This investment is another exciting step towards achieving our international business objectives,” Osborne stated.
The 8 M W gas fired power station supports an estimated population of 3,000 people; however, this number significantly increases during tourist season. Exmouth Power Station is the only source of power connected to the Exmouth grid and has the capabilities to leverage its natural monopoly along with the tourist and military activity in the area. David Bradley has been engaged by Fengate Exmouth Holdings as Managing Director, overseeing day to day operations as well as pursuing other compatible synergistic opportunities. Exmouth Power Station is one of Fengate’s seven power projects and the first natural gas plant within the firm’s portfolio.
In late 2014, Osborne led Fengate’s first Australian investment, ANZ Terminals, which was the starting point for Fengate’s international infrastructure portfolio. He continues to successfully identify and target projects in the Asia-Pacific region while establishing strategic relationships with clients, partners and lenders.