News Summary
Karpower Valley LLC has acquired the AmFELS shipyard at the Port of Brownsville for $50 million, aiming to revitalize the facility for offshore and marine engineering projects. The 240-acre yard has seen decreased utilization under its previous owner, Seatrium Ltd., which is shifting focus toward innovative energy development. This change is expected to enhance local economies and support environmental initiatives, including cutting-edge technology projects for LNG conversion. The deal’s completion is subject to standard conditions, with ongoing projects expected to conclude by the end of 2025.
Texas – Karpower Valley LLC has successfully acquired the AmFELS shipyard located at the Port of Brownsville for approximately $50 million, a strategic move expected to enhance power generation capabilities along the Texas Gulf Coast. This transaction marks a significant shift in the local maritime and energy landscape, particularly for offshore and marine engineering projects.
The AmFELS facility spans 240 acres and is situated on the Brownsville Ship Channel, making it well-suited for rig repairs and vessel conversions. However, the shipyard has seen diminished utilization in recent years as its previous owner, Singapore’s Seatrium Ltd., redirected its resources towards larger hubs in Singapore and Brazil.
Karpower Valley LLC is an affiliate of Karpowership, a global operator of floating power plants. The company currently possesses 50 powerships that deliver electricity to various emerging energy markets worldwide. Karpowership is part of Istanbul-based Karadeniz Holding and aims to expand its Gas-to-Power capacity significantly.
As part of the acquisition agreement, $50 million of the payment will be deferred, set to be paid one year following the deal’s closure. The book value of the assets sold was approximately $39 million as of June 30, 2025. This transaction is seen as a recalibration of Seatrium’s assets in the U.S. while simultaneously maintaining collaborative efforts with Karpowership.
Seatrium plans to utilize the proceeds from the sale to fortify its balance sheet and fund future projects in liquefied natural gas (LNG), offshore wind, and advanced rig designs. The sale also reflects the broader trend of consolidation and realignment within the maritime and offshore energy sectors in response to market dynamics and the growing focus on cleaner energy options.
The Port of Brownsville plays a vital role in the region’s economic development, positioned 277 miles south of San Antonio along the Gulf of Mexico. Its deepwater access and proximity to Mexico make it an attractive hub for businesses looking to expand cross-border operations.
Seatrium’s ongoing commitment to completing all current projects at AmFELS by the end of 2025 aims at ensuring a seamless transition for Karpower Valley LLC. The relationship between Seatrium and Karpowership has strengthened recently, exemplified by the issuance of a Letter of Intent for the conversion of three high-capacity LNGT units and Karpowership’s next-generation powerships. These future projects will incorporate advanced technologies such as Carbon Capture, Utilization, and Storage (CCUS) systems.
Ultimately, this acquisition presents an opportunity for Karpower Valley LLC to further its objective of doubling its global installed Gas-to-Power capacity from 1% to 2% over the next decade. Karpowership currently operates 50 powerships with a capacity of 10,000 MW and oversees 11 LNGT units across 20 countries.
The completion of the sale is contingent on customary closing conditions, including the necessary lease transfer from the Port of Brownsville. As both companies shift their focus towards innovation and technological advancement, the acquisition is anticipated to foster growth and development in the maritime and energy sectors both locally and globally.
Deeper Dive: News & Info About This Topic
- gCaptain: Singapore’s Seatrium Offloads Texas AmFELS Yard
- Wikipedia: Shipyard
- FreightWaves: Texas Shipyard Purchased by Turkish Consortium
- Google Search: Texas shipyard
- Valley Central: Brownsville Digs into Tenaska Power Plant Project
- Encyclopedia Britannica: Liquefied Natural Gas
- Google News: Karpowership
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