After Delay in Construction, Japanese New Fortress Energy Confirms That Operation of New Natural Gas Terminals in Santa Catarina and Pará Will Start in 2023

Project for the Construction of New Natural Gas Terminals by New Fortress Energy in Santa Catarina and Pará is Still Delayed, but the Company Confirmed It Will Deliver the Structures for the Start of Operations Already During the Year of 2023.

During last Thursday (04/08), New Fortress Energy confirmed that the new liquefied natural gas (LNG) terminals in Santa Catarina and Pará will go into operation in 2023, even though the initial plan was to deliver the structures in 2022. The regasification plant in Baía de Babitonga (SC) is expected to be delivered by the end of this year, and the company plans to expedite the construction project.

New Fortress Energy Plans to Expedite the Construction Project of New Natural Gas Terminals in Santa Catarina to Start Operations Already in 2023

After a long delay in the construction period planned for the project, which was supposed to be delivered during 2022, New Fortress Energy announced this week that it intends to deliver the new natural gas terminals in Santa Catarina for the start of operations in 2023.

The optimistic expectation is based on the construction plan for the Baía de Babitonga plant, which is already 90% complete and is expected to be fully delivered by the end of 2022. 

The delays in New Fortress Energy’s construction projects and, mainly, the long hold-up in defining an LNG supplier for the Southern Gas Terminal (TGS) have concerned major consumers in Santa Catarina. This is because the project to construct the new terminals was initially seen as a significant business opportunity in the Santa Catarina free trade market, but it is now being increasingly viewed with skepticism by companies due to the ongoing construction delays. 

The natural gas distribution company in Santa Catarina, SCGás, was expecting to start receiving the fuel in April of this year, but New Fortress Energy delayed the construction of the project.

Now, the distributor and other major consumers in the Santa Catarina market fear that the increased European demand will drive away suppliers who were previously interested in supplying the new Brazilian terminal, thus requiring shorter deadlines for the delivery of the company’s natural gas terminals in the region. 

Project to Install New Natural Gas Terminals by New Fortress Energy is Further Advanced in Pará, However Construction Still Faces Delays 

Unlike what is happening in the state of Santa Catarina, New Fortress Energy is further along in the Barcarena region (PA) and has already begun construction of the 605 MW thermoelectric plant associated with the terminal, which is expected to be completed and start operations in 2025.

To achieve this, the energy company needs to ensure more security and efficiency in the timelines amid the controversies surrounding the delays in construction in Santa Catarina. In addition to the natural gas terminals in the regions, New Fortress Energy has also signed another gas supply contract with Alunorte (PA) starting in 2023 and is seeking new industrial customers in the region.

Finally, another important move by the company recently was the sale of its 50% stake in Centrais Elétricas de Sergipe Participações S.A (Celsepar) to Eneva, a deal that raised US$ 550 million in revenue for the company. 

Thus, New Fortress Energy has the necessary resources to expand its presence in the Brazilian energy market, but it needs to focus now on meeting the delivery timelines of its construction projects to avoid deterring potential investments in natural gas ventures, as has been happening with the terminals in Santa Catarina.