New Fortress Energy Inc. has announced plans to divest the majority of its midstream liquefied natural gas (LNG) business to a new joint venture with Apollo Global Management Inc. as it focuses on its own Fast LNG infrastructure.

New York-based NFE has disclosed plans to sell 11 LNG assets to the new joint venture in a deal valued at around $2 billion. The new company is 80% owned by Apollo and 20% by NFE. The transaction, which NFE said could close in the fall, would give the joint venture six floating storage and regasification units (FSRUs), two LNG carriers and three floating storage units.

NFE revealed that it could receive around $1.1 billion from the transaction. As part of the deal, the company would also charter 10 of the joint venture’s 11 assets for 20 years as part of its LNG supply operations.

NFE CEO Wes Edens said the new partnership helps meet NFE’s “growing infrastructure needs”, but the transaction would also help his company pursue its downstream growth strategy.

“With Apollo, we are creating a leading marine LNG infrastructure platform to help accelerate the energy transition while freeing up capital to continue investing in our Fast LNG and downstream LNG projects around the world,” said said NFE CEO Wes Edens.

NFE executives told investors in May that the company plans to file applications this summer for six more floating liquefaction facilities in the Gulf of Mexico (GOM). NFE has filed two applications for its Fast LNG technology in the GoM and ultimately expects 11.2 million metric tonnes/year (mmty) of capacity to be built and deployed.

Fast LNG has been described by NFE as a faster and cheaper way to deploy an LNG terminal than traditional floating LNG terminal technology, which uses larger trains on new or converted vessels.

The announcement of the transaction also coincided with the announcement of major partnerships on LNG and offshore exploration projects in Mexico.

Apollo, which currently manages around $513 billion in assets, said it participated in the partnership as part of its sustainable investing initiative. Brad Fierstein, Apollo partner, said the new joint venture could advance the company’s environmental goals by creating a strong platform to increase the introduction of natural gas into new electricity markets.

“This is a high-quality portfolio that increases global energy security, accelerates decarbonization efforts, and facilitates the use of LNG, which is cleaner and more affordable than diesel,” Fierstein said.

NFE acquired most of its assets highlighted in the transaction just over a year and a half ago after acquiring Golar LNG Partners LP and Hygo Energy Transition Ltd. Since then, it has taken advantage of its new assets to develop its LNG distribution business and the leasing of its FSRUs to countries in need of regasification capacity.

Since the invasion of Ukraine by Russia in February, European countries in particular have been looking for available infrastructures to increase storage and regasification capacities. In May, NFE told investors it was currently tracking 18 FSRU proposals globally.

The company currently owns seven FSRUs and has tagged two LNG carriers for conversion. According to the company, only three of these units could be available for rent by the end of the year.