New Fortress pens new Brazilian LNG supply deals

US LNG player New Fortress Energy has signed two new supply deals in Brazil as it continues to expand its operations in the country.

NFE said in a statement it had signed the deals with subsidiaries of Unigel Participações. It would supply LNG to the Unigel Agro-BA and Unigel Agro-SE fertilizer plants located in the Brazilian states of Bahia and Sergipe, respectively.

In addition, the agreements also include an option to supply Unigel’s chemicals facility in Candeias, state of Bahia, according to NFE.

In total, NFE expects to supply Unigel with up to 41 Tbtu of natural gas annually or about 1.4 million gallons of LNG per day for a 5-year term beginning in the first quarter of 2022.

“We are excited to become the strategic gas supply partner of Unigel, one of the premier industrial companies in Brazil,” said chief executive Wes Edens.

He added this partnership demonstrates the value NFE’s LNG import terminals would provide to customers in Brazil.

The supply of gas from NFE’s strategically-located Suape and Sergipe LNG terminals in Brazil’s northeast will connect Unigel’s operations to the global LNG and natural gas markets as well as significantly reduce pipeline transportation charges, according to NFE.

Also, Unigel’s fertilizer plants are capable of producing over 3,000 tons per day of urea in total.

NFE added the transaction is subject to the receipt of certain regulatory approvals but also other customary conditions.

The firm has this year signed several supply deals, including the Brazilian contract with Norsk Hydro.

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