NorthStar Announces Significant Progress on Expansion of Its LNG Projects and Closing of a New Debt Financing Facility

THE WOODLANDS, Texas–(BUSINESS WIRE)–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 5,400 cubic meter LNG articulated tug barge unit (“ATB”), Clean Canaveral, continue as expected towards being in service by Q4 2021. In addition, NorthStar recently closed on a $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 gallons per day and doubling LNG storage capacity to four million gallons. 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 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 percent.”

Last week, NorthStar, through a newly formed entity, Seaside LNG Holdings, LLC, closed on a $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 recognize 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.

About JAX LNG

JAX LNG, LLC is a joint venture between NorthStar Midstream and Pivotal LNG, a subsidiary of BHE GT&S, currently operating a 120,000 gallon per day LNG plant with two million gallons of storage in Jacksonville, Florida. The LNG facility was constructed to bring liquefied natural gas to the southeast U.S. and Puerto Rico. For more information on JAX LNG, visit www.jaxlng.com

About Polaris New Energy

Polaris New Energy is a wholly owned subsidiary of NorthStar formed to supply marine transportation logistics to the growing demand for marine transportation of LNG in the U.S. Jones Act market. For more information, visit www.polarisnewenergy.com

About NorthStar

NorthStar is a diversified logistics company providing flexible crude oil, sand and LNG services, including storage and transportation solutions, to the North American energy industry. NorthStar’s assets include a 375-acre crude oil and sand logistics transloading and transportation terminal with 500,000 barrels of crude storage and over 23 tons of sand storage located in East Fairview, North Dakota, a crude oil terminal with 160,000 barrels of crude storage located in Alexander, North Dakota, a FERC-regulated crude oil pipeline located in McKenzie County, North Dakota providing access to the Dakota Access Pipeline via the terminals in East Fairview and Alexander, and an LNG production facility, marine loading dock and LNG barging operation in Jacksonville, Florida. For more information, visit www.northstarmidstream.com

About Pivotal LNG

Pivotal LNG, Inc. (Pivotal LNG) is a wholly-owned subsidiary of BHE GT&S, a Berkshire Hathaway Energy company, with more than forty years of experience providing clean, alternative energy solutions to industries throughout the United States – from power generation and manufacturing to marine transportation and heavy-duty trucking. With liquefied natural gas production, transportation and delivery capabilities, the company offers a number of reliable, flexible, and cost-effective solutions. Pivotal LNG owns and operates the Trussville LNG facility in Alabama and has 50% ownership of the JAX LNG facility in Florida. Pivotal LNG’s affiliate owns and operates the Towanda Facility in Bradford County, Pennsylvania. Visit www.pivotallng.com for more information on Pivotal LNG.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $148 billion in assets under management as of December 31, 2020. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.

Contacts

Tim Casey

(713) 244-5992

tcasey@northstarmidstream.com