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The American New Fortress Energy Resumes the Agreement Canceled Last October with Alunorte Alumina to Market LNG in Barcarena, Pará
The American company, New Fortress Energy (NFE), returns the contract, canceled last October, and will supply liquefied natural gas (LNG) to Alunorte Alumina, a subsidiary of Norsk Hydro in Barcarena, Pará. A memorandum of understanding (MOU) was disclosed this Thursday (15) with Alunorte, in Pará, for LNG supply for 15 years starting in 2022.
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According to the Chairman and CEO of New Fortress Energy, Wes Edens, the American company is excited about the long-term partnership and pleased to assist Hydro in transitioning the Alunorte refinery in Pará to more accessible and less polluting energy.
Hydro, in Pará, is converting part of the steam generation and calcination process at Alunorte, which was previously fueled by oil, to natural gas, resulting in a reduction of approximately 20%, according to a statement from the American company.
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The Agreement Between Alunorte and New Fortress Energy
A minimum amount of natural gas must be delivered from the regasification terminal of LNG that will be installed in Pará, according to the memorandum. The proposed agreement is currently subject to final documentation, and the companies will work together to finalize their commercial agreements.
The parties involved in the original agreement were Norsk Hydro, Golar LNG, and Centrais Elétricas de Barcarena (Celba). In January, the American company closed contracts with the intention of purchasing Hygo Energy (Golar Power), and a US$ transaction. Consequently, it took control of the main player in Brazil for LNG commercialization and infrastructure.
American Company and US$ 5 Billion Operation
NFE also announced the completion of the acquisition of Golar LNG Partners LP and Hygo Energy.
According to the CEO of the American company, these operations enhance their efforts to provide more clean energy worldwide. With this acquisition, NFE is the leader in gas and energy in a rapidly growing market and also one of the leading energy transition companies in the world.
As such, NFE takes over the floating storage and regasification unit and a 50% stake in the Port of Sergipe, along with the 1500 MW thermoelectric plant, making the combined transactions valued at US$ 5.1 billion in enterprise value and US$ 2.43 billion in equity value.
Advantages of Using LNG
As an excellent transition energy for various countries, such as Brazil, LNG presents a series of advantages. It is a high-value energy source, competing with diesel, ethanol, and gasoline.
It can be easily exchanged for diesel in fuel use for trucks and ships; thus, LNG is an excellent substitute as fuel in the transportation sector. In the electricity sector, it has an even higher average price, considering that renewable sources have also lowered prices over the years.
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