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NFE announced in a statement that its Brazil platform has entered into an agreement for its Terminal de Gas Sul (TGS).
According to NFE, the lease agreement is expected to commence in August 2026.
The agreement marks the commercialization of TGS and is expected to generate $50 million in annual EBITDA by 2027.
NFE did not provide further details.
Launched in 2024, TGS is an offshore LNG import terminal with a capacity of approximately 6 mtpa (300 TBtu) and maximum sendout of 500 mmscf/day.
The FSRU-based facility includes a 33-kilometer, 20-inch pipeline, which connects the facility to the existing Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) pipeline.
It previously included the FSRU Energos Winter, owned by Energos Infrastructure.
However, NFE signed a five-year charter deal last year for this 138,350-cbm FSRU with state-owned EGAS for deployment in Damietta.
NFE said that TGS is a strategically located LNG import terminal that provides “critical and flexible” access to natural gas for power generation in southern Brazil, a region with limited alternative gas supply options.
“The facility is expected to play a key role in supporting reliable, dispatchable power generation through its flexible LNG infrastructure,” it said.
In addition to these contracted cash flows, TGS is also expected to underpin NFE’s long-term growth in Brazil.
NFE said the terminal will supply the company’s UTE Lins 2 power project, a greenfield capacity award from Brazil’s recent auction that is expected to commence operations in 2031.
“This combination of near-term contracted cash flow in 2026 and long-term growth tied to greenfield power generation in 2031 reinforces TGS as a cornerstone asset within NFE Brazil’s integrated LNG-to-power platform, with additional opportunities to expand utilization through future agreements with power generators and industrial customers,” NFE said.
Restructuring
NFE recently entered into a restructuring support agreement with its creditors as part of a consensual UK restructuring plan, in what is expected to be one of the largest consensual UK RP restructuring transactions ever completed.
According to NFE, through the UK RP process, creditors will exchange NFE debt for a combination of debt, common, and preferred equity.
NFE said there are several steps to the transaction.
Under the terms of the RSA, the first step is to separate NFE into two independent entities.
These include “BrazilCo”, a privately held, standalone company to be owned by creditors, comprised of NFE’s terminals, power plants, and operations in Brazil; and “New NFE”, a publicly traded, integrated LNG-to-power company comprising all other remaining assets and operations of NFE.
Also, NFE said the creditor groups will exchange their debt instruments for a basket of “New NFE” debt, preferred equity, and common shares.
In aggregate, the transaction will result in the reduction of “New NFE” corporate debt from $5.7 billion to $527.5 million, the issuance of up to $2.5 billion of “New NFE” preferred equity, and the issuance of 65 percent of “New NFE” common equity.
Moreover, existing NFE shareholders will have their ownership diluted to 35 percent of “New NFE” common equity and are subject to further dilution if some or all the preferred equity is converted at the end of year three.
