US LNG player New Fortress Energy said it has finalized a 15-year deal with a unit of Norway’s Norsk Hydro to supply natural gas to the Alunorte alumina refinery in Brazil.
The deal follows a memorandum of understanding signed by the duo in April this year but also the execution of definitive commercial terms in September.
NFE said in a statement on Monday it has agreed to supply Hydro with 29.5 TBtu of natural gas annually or equivalent to about 1 million gallons of LNG per day for a period of 15 years.
The firm’s Barcarena LNG receiving and regasification terminal located in the state of Para, Brazil, will supply the fuel to the refinery. It acquired the FSRU-based project via the Golar deal that included Hygo.
When completed in 2022, the Barcarena LNG terminal would be the sole point of LNG imports in the state of Para and the North region of Brazil, NFE said.
Hydro previously said it would complete the conversion of the Alunorte refinery from fuel oil to natural gas by the first quarter of 2023.
The conversion from oil-based fuel supply to natural gas would reduce the refinery’s annual CO2 emissions by an estimated 700,000 tonnes per annum and support Hydro’s global commitment to reduce greenhouse gas emissions by 30 percent by 2030, it said.