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NFE plans to transfer UTE Portocem contract for thermoelectric parks connected to the Barcarena and TGS LNG terminals.
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 from NFE.
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.
The acquisition of 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 advance for the company in the energy market.
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The fifteen-year contract, won by UTE Portocem in the 1st Power Capacity Reserve Auction, guarantees the annual payment of US$280 million to NFE, subject to approval by the regulatory agency.
Acquisition of PPA Portocem by New Fortress Energy
NFE expects the transaction to close in March 2024, with cash flows of the project scheduled to begin in July 2026 at the latest.
Business Expansion in Brazil
The company's idea is to transfer the contract to thermoelectric energy assets connected to LNG terminals that the company has in Brazil: Barcarena, in Pará, and Terminal Gas Sul (TGS), in Santa Catarina. Both should enter into operation by the beginning of 2024.
Energy 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 an investment by Ceiba Energy, worth approximately R$4,7 billion, which is currently under construction in the Ceará Export Processing Zone (ZPE Ceará), in the Industrial and Port Complex do Pecém (CIPP).
NFE Strategic Planning
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.
Effective Use of Assets
By utilizing its existing asset base, the company hopes to reduce costs and generate incremental revenue and gains at its terminals.
Strategic Alignment and Asset Optimization
‘With the acquisition of PPA Portocem, we have added a long-lived 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 shareholder value,” said Andrew Dete, Managing Director of New Fortress Energy.
Improving Natural Gas Supply
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
