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

Charif Souki steps down as chairman of Tellurian

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

QatarEnergy, ExxonMobil expect first LNG from Golden Pass plant in H1 2025

Energy giants QatarEnergy and ExxonMobil are expecting to start LNG production at their Golden Pass LNG export terminal on...

Dynagas FSRU ready to start Stade job

The 174,000-cbm FSRU Transgas Force, owned by Dynagas, has left Germany's Bremerhaven and will now work as an LNG...

More News Like This

NFE says to launch Altamira FLNG project by year-end

US LNG firm New Fortress Energy is working to launch its first FLNG project off Altamira, Mexico by the...

NFE nears launch of Barcarena FSRU terminal in Brazil

US LNG player New Fortress Energy is working to launch its Barcarena FSRU-based facility in Brazil by the end...

NFE, Petrobras seal Brazilian FSRU charter deal

US LNG firm New Fortress Energy has executed a definitive deal to charter the 138,250-cbm FSRU Energos Winter from...

NFE expects to launch Altamira FLNG project by early November

US LNG firm New Fortress Energy is now expecting to launch its first FLNG project off Altamira in late...