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

Excelerate inks deal with Hyundai Heavy for newbuild FSRU

US floating LNG player Excelerate Energy has signed a letter of intent with South Korea's Hyundai Heavy Industries for...

DSME wins single LNG carrier order worth about $239 million

South Korea’s shipbuilder Daewoo Shipbuilding and Marine Engineering has received an order for one liquefied natural gas (LNG) carrier...

Golar says Gimi FLNG 86 percent complete

Singapore's Keppel Shipyard continues to progress with the conversion works on the 2.5 mtpa Gimi FLNG and the vessel...

More News Like This

NFE inks deal for Texas green hydrogen plant

US LNG firm New Fortress Energy said it has entered an agreement with compatriot hydrogen solutions firm Plug Power...

Fluor bags second FLNG gig from New Fortress

US engineer Fluor said it has won a second FLNG contract from compatriot LNG player New Fortress Energy. NFE awarded...

NFE inks deals to install floating LNG producers off Mexico

US LNG player New Fortress Energy has signed two separate deals under which it plans to install floating LNG...

NFE forms LNG JV with Apollo

US LNG player New Fortress Energy said it would sell 11 vessels to a new joint venture it formed...