Eneva to buy Brazilian LNG power plant from New Fortress and partner

Brazilian energy firm Eneva has entered into a definitive deal with US LNG firm New Fortress Energy and joint venture partner Ebrasil to buy the Sergipe LNG power plant for about $1.29 billion.

This LNG-to-power project started commercial operations in 2020 and includes a regasification terminal served by the 170,00O-cbm Golar Nanook, and the 1,593 MW plant in Porto de Sergipe.

NFE, which owns 50 percent in the plant and operates the FSRU, said in a statement on Wednesday that Eneva has agreed to acquire 100 percent of the shares of the plant’s owner Celsepar.

In addition, the Brazilian firm agreed to buy Cebarra, which owns 1.7 GW of expansion rights adjacent to the Sergipe power plant.

According to NFE, the total implied enterprise value is about $2.16 billion.

Pursuant to the terms of the transaction, Eneva would also assume the current debt of Centrais Elétricas de Sergipe or Celse, the unit of Celsepar and the project operator, NFE said.

NFE to continue to operate Golar Nanook

“We look forward to maintaining a long-term relationship with Eneva and the Celse power plant,” Wes Edens, chairman and CEO of NFE said.

“Eneva is one of Brazil’s leading power companies and a highly capable long-term owner and operator of this critical power asset for northeast Brazil,” Edens said.

Also, he added that NFE would continue to operate Golar Nanook, that remains chartered to Celse for the next 20 years.

NFE expects the transaction to close in the second half of 2022, subject to satisfying certain closing conditions, including approval by Eneva’s shareholders, the Brazilian antitrust agency and the receipt of necessary consents.

Accounting for NFE’s 50 percent ownership of Celsepar, the transaction would generate proceeds to NFE of about $550 million following the paydown of certain debt and other liabilities and net of transaction expenses, the company said.

- Advertisements -

Most Popular

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

UAE’s Adnoc in Mozambique LNG move

UAE's Adnoc has agreed to buy Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin...

Seatrium secures contract from Hyundai LNG Shipping

Singapore’s Seatrium has secured a contract from South Korea's Hyundai LNG Shipping to repair and upgrade the latter's LNG...

More News Like This

NFE plans to launch Altamira LNG production in May

US LNG firm New Fortress Energy expects to start production of liquefied natural gas at its first FLNG project...

NFE says ‘minor mechanical issue’ will not affect Altamira LNG launch

US LNG player New Fortress Energy said that "a minor technical issue" which took place last week on one...

NFE inks EPC contract for Brazilian LNG power plant

US LNG player New Fortress Energy has finalized an EPC contract with a consortium formed by Mitsubishi Power Americas...

NFE wraps up Brazilian LNG-to-power deal

US LNG player New Fortress Energy has completed its previously announced deal with Ceiba Energy to acquire a 1.6...