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NFE Awaits Approval to Transfer Contract from UTE Portocem to Thermal Power Plants Connected to LNG Terminals in Barcarena and TGS.
The company New Fortress Energy (NFE) has reached an agreement to acquire the obligations and revenues from the 1.6 GW capacity reservation contract of the Portocem Thermal Power Plant (UTE Portocem), a subsidiary of Ceiba Energy, in exchange for convertible preferred shares of NFE. This transaction is an important step for NFE in its commitment to expand its operations and strengthen its asset portfolio in the energy sector.
Expansion of New Fortress Energy Project in Brazil
NFE expects that the transaction will be completed in March 2024, with the cash flows from the project expected to start by July 2026 at the latest.
New Thermal Power Assets Connected to LNG Terminals
The company’s idea is to transfer the contract to the thermal power assets connected to the LNG terminals that the company owns in Brazil: Barcarena, in Pará, and Terminal Gas Sul (TGS), in Santa Catarina. Both are expected to go into operation by early 2024.
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Expansion of New Fortress Energy’s Presence in Brazil
‘We are extremely pleased to be expanding our business in Brazil and consolidating NFE as a leading provider of clean and reliable energy for one of the fastest-growing economies in the world’, said Wes Edens, chairman and CEO of New Fortress Energy.
Investment in UTE Portocem by Ceiba Energy
With a 1.6 GW project, UTE Portocem is an investment by Ceiba Energy, worth approximately R$ 4.7 billion, currently under construction in the Export Processing Zone of Ceará (ZPE Ceará), in the Pecém Industrial and Port Complex (CIPP).
Expansion Strategy of New Fortress Energy
NFE’s strategy is to expand its energy complex to 1.2 GW, in Barcarena, by 2026, while the remaining 0.4 GW will be allocated to power generation assets connected to TGS.
The original development of 630 MW by NFE in Barcarena remains on schedule for the third quarter of 2025.
Value for Shareholders and Vertical Integration
By leveraging its existing asset base, the company expects to reduce costs and generate incremental revenue and gains at its terminals.
‘With the acquisition of the PPA Portocem, we are adding a contracted asset of long duration that is highly complementary to our presence in Brazil. This aligns with our vertical integration strategy and optimization of our assets in an effort to create long-term value for shareholders’, said Andrew Dete, managing director of New Fortress Energy.
Solution for Limitations in Natural Gas Supply
The TGS terminal expects to alleviate part of the limitations in natural gas supply in the region, which includes over 3 GW of industrial and power generation customers.
Source: EPBR
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