New Fortress in another Brazil LNG-to-power move after Golar deal

Wes Edens-led New Fortress Energy is continuing with LNG-to-power acquisitions after it on Wednesday revealed a $5 billion deal involving two Golar units.

Under the newest deal, the US firm said it has signed a memorandum of understanding with Petrobras Distribuidora (BR) but also CCETC Brasil to acquire 288MW of 15-year power purchase agreements.

Moreover, New Fortress plans to develop an LNG terminal and gas-fired power plant at the Suape Port in Brazil.

“The Suape Port provides an ideal location for NFE to bring clean and affordable energy to a rapidly growing region of Brazil,” said Edens.

He said the LNG terminal and gas-fired power plant would advance the “clean energy transition” in the state of Pernambuco and the wider Northeast region of Brazil.

“Coupled with our acquisition of Hygo, this provides us a significant portfolio of power and gas assets and a leadership position in Brazil’s large and growing market,” Edens said.

Under the memorandum, BR and CCETC will sell to New Fortress 100% of their respective ownership in power generation companies Pecem Energia and Energetica Camaçari Muricy II, which hold power deals totaling 288MW.

New Fortress expects execution of a definitive sale and purchase agreement in January, subject to final approval from the BR board of directors.

CH4 Energia acquisition

In addtion, the firm also entered into a definitive agreement to acquire CH4 Energia.

The latter owns key permits and authorizations to develop an LNG terminal and up to 1.37GW of gas-fired power at the Suape Port in the city of Ipojuca, State of Pernambuco, Brazil.

NFE plans to satisfy the obligations of the PPAs by moving the site and constructing a 288MW gas-fired power plant and LNG import terminal at the Suape Port.

In order to complete the purchase, the US firm would first need necessary approvals from the Agência Nacional de Energia Elétrica and other relevant regulatory authorities in Brazil.

Furthermore, New Fortress expects to provide LNG and natural gas to major energy consumers within the port complex and across the greater Northeast region of Brazil.

It added the terminal and power plant in the Suape Port should begin commercial operations by the end of 2022.

- Advertisements -

Most Popular

South Korean yards built 500 LNG carriers for export in 30 years

South Korean yards have completed 500 liquefied natural gas (LNG) tankers for export since 1994, according to the Ministry...

Report: Egypt’s EGAS charters Hoegh LNG’s FSRU

The Egyptian Natural Gas Holding Company (EGAS) has chartered Hoegh LNG's floating storage regasification and storage unit, Hoegh Galleon,...

MARAD: Delfin needs to submit amended application for FLNG project

The US Maritime Administration (MARAD) said that Delfin LNG needs to file an amended application for its floating LNG...

More News Like This

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...

Golar LNG appoints new chief commercial officer

Floating LNG player Golar LNG has appointed Federico Petersen as its new chief commercial officer. "Federico has 20+ years of...

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...

NFE sells Puerto Rico power plants, inks new gas supply deal

US LNG player New Fortress Energy has sold two of its operating power plans to the Puerto Rico Electric...