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Gas market: power capacity agreement, transaction payment, preferred shares, regulatory agency, cash flow approval. Adjustments to thermoelectric energy.
New Fortress Energy (NFE) has reached an agreement to acquire the obligations and revenue of the 1,6 GW capacity reserve contract of the Portocem Thermal Power Plant (UTE Portocem), a subsidiary of Ceiba Energy, in exchange for convertible preferred shares. The fifteen-year contract provides for the payment of US$280 million per year to NFE, and was won by UTE Portocem in the 1st Power Capacity Reserve Auction, held in 2021 by Aneel. Completion of the transaction is subject to regulatory agency approval. New Fortress Energy (NFE) is expanding its asset portfolio with the agreement to assume the obligations and revenue of the 1,6 GW Portocem Thermoelectric Power Plant (UTE Portocem) capacity reserve contract. The company reinforces its presence in the energy market with this strategic transaction. Source: Click Oil and Gas.
Acquisition of assets contracted by New Fortress Energy (NFE)
The NFE hopes that the transaction be completed in March 2024, with the cash flows of the project scheduled to begin in July 2026 at the latest.
Expansion of New Fortress Energy’s presence in Brazil
The company's idea is to transfer the contract to the assets of thermoelectric energy connected to LNG terminals that the company has in Brazil: Barcarena, in Pará, and Terminal Gas Sul (TGS), in Santa Catarina. Both must enter Operação until the beginning of 2024.
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New Fortress Energy Power Complex Expansion
We are extremely pleased to expand our business in Brazil and establish NFE as a leading provider of clean, reliable energy for one of the world's fastest growing economies,” said Wes Edens, President and CEO of New Fortress Energy.
With a 1,6 GW project, UTE Portocem is a investment of Ceiba Energy, worth approximately R$4,7 billion, which is currently in construction phase in the Ceará Export Processing Zone (ZPE Ceará), in the Pecém Industrial and Port Complex (CIPP).
New Fortress Energy Future Expansion Projects
NFE's strategy is to expand its energy complex by 1,2 GW in Barcarena in 2026, while the remaining 0,4 GW will be allocated to power generation assets connected to the TGS.
NFE's original 630 MW development at Barcarena remains on schedule for Q2025 XNUMX.
Benefits of the New Fortress Energy Strategy
By utilizing its existing asset base, the company expects to reduce costs and generate return and incremental gains at your terminals.
Alignment with New Fortress Energy's vertical integration strategy
‘With the acquisition of PPA Portocem, we added a contracted asset de Long term which is highly complementary to our presence in Brazil. This aligns with our strategy of vertical integration and optimization of our assets in an effort to generate value for shareholders in the long term,’ said Andrew Dete, managing director of New Fortress Energy.
Impact of the TGS terminal in the region
The TGS terminal hopes to remedy some of the limitations in the region's natural gas supply, which includes more than 3 GW from industrial and power generation customers.
Source: EPBR
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