September 28, 2025

Karpower Valley LLC Acquires AmFELS Shipyard for $50 Million

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 acquired the AmFELS shipyard located at the Port of Brownsville for approximately $50 million. This strategic purchase highlights Karpower’s intentions to enhance its power generation capabilities along the Texas coast, particularly with its focus on floating power plants, known as powerships. The deal involves a deferred payment structure, with $50 million paid one year after the closing, which is still pending customary closing conditions, including lease transfer from the Port.

The AmFELS facility occupies 240 acres along the Brownsville Ship Channel. Historically, this shipyard has played a significant role in supporting various offshore and marine engineering projects, including rig repairs and vessel conversions. However, its utilization has diminished in recent years as Seatrium Ltd., the previous owner, chose to concentrate resources on larger operations in Singapore and Brazil.

Karpower Valley LLC is affiliated with Karpowership, a company that operates a fleet of floating power plants around the globe. Karpowership has a current portfolio of 50 powerships that collectively generate 10,000 MW of electricity, catering to burgeoning energy markets. As a subsidiary of Istanbul’s Karadeniz Holding, Karpowership aims to expand its Gas-to-Power capacity from 1% to 2% within the next decade.

The sale of the AmFELS shipyard aligns with Seatrium’s holistic approach to streamlining its U.S. operations. Following the transaction, Seatrium plans to enhance its focus on engineering innovation and technological advancements through its Texas offices in Houston and Vicksburg, Mississippi. The company is expected to utilize proceeds from the sale to reinforce its balance sheet, allowing investment in liquefied natural gas (LNG), offshore wind, and next-generation rig designs.

To underscore the ongoing collaboration between Seatrium and Karpowership, the two firms have reinforced their partnership through recent developments. They signed a Letter of Intent regarding the conversion of three high-capacity LNG transport ships (LNGTS) and the future generation of powerships. These projects will incorporate advanced technologies such as Carbon Capture, Utilization, and Storage (CCUS) systems.

The AmFELS shipyard sits strategically at the Port of Brownsville, a location that is crucial for industries looking to expand their cross-border operations. Positioned just 277 miles south of San Antonio along the Gulf of Mexico, the port offers deepwater access and proximity to Mexico, making it a favorable site for maritime and offshore operations.

Although the divestment signifies a shift within Seatrium’s operational strategy, the company remains committed to fulfilling all pre-existing projects at the AmFELS facility until the end of 2025. This commitment ensures a seamless transition as Karpower Valley plans to maximize the shipyard’s potential in supporting its expansion in the energy sector.

The completion of this transaction further reflects broader trends in the maritime and offshore energy sectors. Organizations are realigning their business models in response to evolving market conditions and a growing emphasis on cleaner energy solutions. As Karpower embarks on this new venture, the potential for innovation and transformation in power generation along the Texas coast appears promising.

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Author: STAFF HERE GEORGETOWN

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