New Fortress inks Brazil supply deal with Norsk Hydro

A unit of Norway’s Norsk Hydro has signed a memorandum of understanding with US LNG player New Fortress Energy with the aim to replace a major part of its current fuel oil consumption at the Alunorte alumina refinery in Brazil with natural gas.

Under the deal signed on Thursday, NFE expects to deliver a “minimum agreed amount” of natural gas to the refinery per year for a period of 15 years, it said in a statement.

In addition, natural gas would come from NFE’s Barcarena LNG regasification terminal, near the Hydro Alunorte refinery in state of Pará.

NFE expects to launch the Barcarena terminal in 2022. The firm acquired the FSRU-based project via the just completed Golar deal that included Hygo.

To remind, Hygo and Norsk Hydro have last year terminated a supply deal for the Alunorte alumina refinery in Brazil.

Hydro is converting the calcination process and part of the steam generation at the refinery from fuel oil in order to enable it to go on natural gas. This move could reduce emissions by approximately 20%.

“We look forward to this long-term partnership and are pleased to assist Hydro with the transition of the Alunorte refinery to utilizing a cleaner and more affordable supply of energy,” said Wes Edens, NFE chief executive.

Hydro is supporting use of LNG and natural gas in the state of Pará. Access to LNG will enable a more sustainable operation for Hydro, and also give access to natural gas for other industries and consumers in the state of Pará,” John Thuestad, executive vice president for Hydro’s Bauxite & Alumina business area, said.

The proposed agreement is subject to reaching commercial agreements and final documentation between the duo.

Most Popular

Germany, Egypt seal FSRU charter deal

Germany's Ministry for Economic Affairs and Energy has signed a deal with Egypt's state-owned EGAS to charter the 174,000-cbm FSRU Energos Power.

Energy Transfer seals Lake Charles LNG supply deals

Texas-based Energy Transfer has signed new supply deals for its planned Lake Charles LNG export facility in Louisiana as it works to take a final investment decision by the end of this year, according to its management.

Sempra still targets Port Arthur LNG expansion FID in 2025

Sempra Infrastructure, a unit of Sempra, still expects to make a final investment decision on the second phase of its Port Arthur LNG export project in Texas in 2025.

More News Like This

Excelerate in $700 million senior notes offering

US FSRU player Excelerate Energy aims to raise about $700 million via an offering of unsecured senior notes due 2030.

Excelerate buys NFE’s Jamaica business for $1.05 billion

US FSRU player Excelerate Energy has entered into a definitive agreement with compatriot LNG player New Fortress Energy to acquire NFE’s business in Jamaica for $1.055 billion in cash.

NFE amends Puerto Rico gas supply contract

US LNG player New Fortress Energy has amended its recently extended 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority.

NFE shipped 12 Altamira LNG cargoes

US LNG firm New Fortress Energy has shipped 12 liquefied natural gas cargoes from its FLNG project off Mexico's Altamira since August last year, while the company continues to move forward with work on its second unit, which will be installed onshore Altamira.