New Fortress Energy Closes Deal to Acquire 1.6 GW from Portocem Power Plant

Written by Paulo Nogueira

Published on 28/12/2023 at 22:41

Terminal de regaseificação de GNL do Pecém (Foto: Divulgação Petrobras) – Todos os direitos: EPBR

Be the first to react!

NFE Expects To Transfer Contract From UTE Portocem To Thermal Power Plants Connected To The Barcarena LNG Terminals, In Accordance With Capacity Reserve.

New Fortress Energy (NFE) has just closed a deal to take over the obligations and revenue from the 1.6 GW capacity reserve contract of the Portocem Thermal Power Plant (UTE Portocem), which is a subsidiary of Ceiba Energy. In exchange, NFE will receive convertible preferred shares of UTE Portocem.

With a duration of fifteen years, the contract provides for a payment of US$ 280 million per year to New Fortress Energy. UTE Portocem won the contract at the 1st Capacity Reserve Auction for Power, held in 2021 by Aneel. The completion of this transaction is subject to approval by the regulatory agency, which will represent an important milestone for NFE in the Brazilian energy market.

New Fortress Energy: Expansion In Brazil

NFE expects the agreement to be finalized by March 2024, with cash flows from the project expected to start by July 2026 at the latest. This agreement is part of a broader strategy to expand New Fortress Energy’s (NFE) presence in the Brazilian energy market.

ARTICLE CONTINUES BELOW

Portocem Thermal Power Plant And Ceiba Energy

NFE’s idea is to transfer the contract to the thermal energy assets 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 are expected to be operational by early 2024.

Project And Operation

With a project of 1.6 GW, UTE Portocem is an investment from Ceiba Energy, worth approximately R$ 4.7 billion, which is currently under construction in the Ceará Export Processing Zone (ZPE Ceará), within the Pecém Industrial and Port Complex. The transaction with NFE has a long-term duration, and the company expects to consolidate its presence in the country.

Expansion Of Asset Base

NFE’s strategy is to expand its energy complex by 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 within the timeline, scheduled for the third quarter of 2025.

Economic Impact

By utilizing its existing asset base, the company expects to reduce costs and generate incremental revenue and gains at its terminals. The acquisition of the PPA Portocem is a key part of New Fortress Energy’s vertical integration and asset optimization strategy, aligning with the company’s long-term vision.

Future Outlook

The TGS terminal expects to address some of the limitations in natural gas supply in the region, which includes over 3 GW of industrial and power generation customers. New Fortress Energy is committed to the success and sustainable growth of its operations in Brazil, strengthening its position as a leader in providing clean and reliable energy for the country. With this, the company consolidates its role as a leading supplier of clean and reliable energy for Brazil’s growing economy.

Source: EPBR

New Fortress Energy Closes Deal to Acquire 1.6 GW from Portocem Power Plant

NFE Expects To Transfer Contract From UTE Portocem To Thermal Power Plants Connected To The Barcarena LNG Terminals, In Accordance With Capacity Reserve.

New Fortress Energy: Expansion In Brazil

Portocem Thermal Power Plant And Ceiba Energy

Project And Operation

Expansion Of Asset Base

Economic Impact

Future Outlook

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

While Saudi Arabia and Qatar are already closing a 300-kilometer-per-hour bullet train to connect the capitals in two years, Brazil is still at the stage of auctioning the first freight railway that should actually come to fruition.

Turkey hit a target using a real warhead and confirmed that its SOM-J cruise missile is ready, another step for the country to become a power that manufactures and exports its own military technology.

While the United States and China compete over giant rockets and lunar bases, India made a “spaceplane” land on its own at over 320 km/h after being released by a helicopter at an altitude of 4.5 km; Pushpak shows that New Delhi also wants to enter the era of reusable space vehicles.

Japan and Mercosur may reach an agreement to lower the cost of cars and auto parts, with manufacturers like Toyota, Honda, and Nissan coming into focus.

Volkswagen is preparing an SUV derived from the new Amarok to compete with the Toyota SW4 and Haval H9, utilize the Argentine Pacheco factory, and transform a pickup into a more profitable family of products.

New Fortress Energy Closes Deal to Acquire 1.6 GW from Portocem Power Plant

NFE Expects To Transfer Contract From UTE Portocem To Thermal Power Plants Connected To The Barcarena LNG Terminals, In Accordance With Capacity Reserve.

New Fortress Energy: Expansion In Brazil

Portocem Thermal Power Plant And Ceiba Energy

Project And Operation

Expansion Of Asset Base

Economic Impact

Future Outlook

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

IBS and CBS regulations change credit reimbursement and raise financial alert in the oil and gas industry

China puts into operation the largest shallow lithology offshore field in the country, with 79 wells, heavy oil, and a production of 20,000 barrels per day.

Petrobras announces an investment of R$ 2.8 billion in Amazonas to expand natural gas production in Urucu and modernize the river fleet, boosting energy, logistics, and the regional economy with new vessels adapted for operation in the Amazon.

While Saudi Arabia and Qatar are already closing a 300-kilometer-per-hour bullet train to connect the capitals in two years, Brazil is still at the stage of auctioning the first freight railway that should actually come to fruition.

Turkey hit a target using a real warhead and confirmed that its SOM-J cruise missile is ready, another step for the country to become a power that manufactures and exports its own military technology.

While the United States and China compete over giant rockets and lunar bases, India made a “spaceplane” land on its own at over 320 km/h after being released by a helicopter at an altitude of 4.5 km; Pushpak shows that New Delhi also wants to enter the era of reusable space vehicles.

Japan and Mercosur may reach an agreement to lower the cost of cars and auto parts, with manufacturers like Toyota, Honda, and Nissan coming into focus.

Volkswagen is preparing an SUV derived from the new Amarok to compete with the Toyota SW4 and Haval H9, utilize the Argentine Pacheco factory, and transform a pickup into a more profitable family of products.