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NFE Plans to Transfer Contract from UTE Portocem to Thermoelectric Plants Connected to the GNL Terminals of Barcarena and TGS.
New Fortress Energy (NFE) has reached an agreement to acquire the obligations and revenue from the 1.6 GW capacity reserve contract of the Portocem Thermoelectric Plant (UTE Portocem), a subsidiary of Ceiba Energy, in exchange for convertible preferred shares from NFE.
The fifteen-year contract provides for annual payments of US$ 280 million to NFE and was won by UTE Portocem in the 1st Capacity Reserve Auction held in 2021 by Aneel. The completion of the transaction is subject to the approval of the regulatory agency.
The acquisition of the obligations and revenue from the 1.6 GW capacity reserve contract of the Portocem Thermoelectric Plant (UTE Portocem), announced by New Fortress Energy (NFE), marks a significant advancement for the company in the energy market.
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The fifteen-year contract won by UTE Portocem in the 1st Capacity Reserve Auction guarantees annual payment of US$ 280 million to NFE, subject to the approval of the regulatory agency.
Acquisition of the Portocem PPA by New Fortress Energy
NFE expects the transaction to be concluded in March 2024, with cash flows from the project expected to begin no later than July 2026.
Expansion of Business in Brazil
The company’s idea is to transfer the contract to thermoelectric power assets connected to the GNL terminals that the company has in Brazil: Barcarena, in Pará, and Terminal Gas Sul (TGS), in Santa Catarina. Both are expected to start operations by early 2024.
Energy Complex Expansion
‘We are extremely pleased to expand our business in Brazil and consolidate 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.
With a 1.6 GW project, UTE Portocem is an investment by Ceiba Energy, valued at approximately R$ 4.7 billion, which is currently under construction in the Ceará Export Processing Zone (ZPE Ceará), in the Industrial and Port Complex of Pecém (CIPP).
NFE Strategic Planning
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 on schedule for the third quarter of 2025.
Effective Use of Assets
By utilizing its existing asset base, the company expects to reduce costs and generate income and incremental gains at its terminals.
Strategic Alignment and Asset Optimization
‘With the acquisition of the Portocem PPA, we are adding a long-term contracted asset that 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 long-term value for shareholders’, said Andrew Dete, general director of New Fortress Energy.
Improvement of Natural Gas Supply
The TGS terminal expects to alleviate some of the limitations in the natural gas supply of the region, which includes over 3 GW of industrial and power generation customers.
Source: EPBR
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