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NFE transfers contract from UTE Portocem to thermoelectric parks connected to the Barcarena and TGS LNG terminals, seeking incremental gains.
The company New Fortress Energy (NFE) has reached an agreement to acquire the responsibilities and revenue of the 1,6 GW capacity reserve contract of the Portocem Thermal Power Plant (UTE Portocem), a subsidiary of Ceiba Energy. This agreement involves the exchange of convertible preferred shares of NFE.nodiscard
The fifteen-year contract involves an annual payment of US$280 million 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. Securing yet another promising business for New Fortress Energy.
Acquisition of PPA of Portocem Thermoelectric Power Plant by New Fortress Energy
New Fortress Energy (NFE) is looking forward to the completion of transaction in March 2024, with the cash flows of the project scheduled to begin, at the latest, in July 2026. The company's idea is to transfer the contract to the energy assets thermoelectric connected to the Liquefied Natural Gas (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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Expansion of NFE in Brazil
The president and CEO of New Fortress Energy, Wes Edens, stated that the company is extremely pleased to expand its business in Brazil, consolidating itself as a leading supplier of clean and reliable energy to one of the fastest growing economies in the world.
Investment in the Portocem Thermoelectric Plant
With an investment in Ceiba Energy, worth approximately R$4,7 billion, UTE Portocem, with a capacity of 1,6 GW, is in construction phase in the Ceará Export Processing Zone (ZPE Ceará), in the Pecém Industrial and Port Complex (CIPP). NFE's strategy includes expanding 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.
Impact on NFE Development Schedule
NFE's original 630 MW development at Barcarena remains on schedule, to be completed in the third quarter of 2025. Utilizing its existing asset base, the company expects to reduce costs and generate return and incremental gains at the terminals. The acquisition of PPA Portocem adds a contracted asset de Long term which is highly complementary to NFE's presence in Brazil, aligning with the strategy of vertical integration and asset optimization in an effort to generate value for shareholders in the long term, as stated by Andrew Dete, general director of New Fortress Energy.
Solutions for Natural Gas Supply Limitations
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
