New Fortress Power provides contracted energy asset to present Brazilian infrastructure portfolio

Following customary closing circumstances together with regulatory approval for the switch of the PPA in Brazil, the PPA will contribute agency capability funds of US$280 million/y by way of its 15-year contract life. NFE expects the transaction to shut in March 2024, with challenge money flows anticipated to start no later than July 2026.

NFE plans to leverage its present infrastructure in Brazil and switch the PPA to new energy property linked to NFE’s present Brazilian LNG terminals – Barcarena and Terminal Fuel Sul (TGS). NFE intends to utilise its present infrastructure in place in Barcarena to strategically increase its energy complicated by 1.2 GW, with an anticipated business operations date (COD) for the enlargement in 2026. NFE’s unique 630 MW improvement in Barcarena stays on schedule for COD in 3Q25. NFE plans to switch the remaining 0.4 GW of the PPA to a different energy era asset that connects to its TGS terminal. Through the use of its present asset base, NFE expects to scale back prices and generate incremental throughput and earnings at its terminals.

With the acquisition of the PPA, NFE provides vital downstream energy infrastructure to its asset base, enabling additional utilisation of its present terminal infrastructure in Barcarena and TGS. The TGS terminal is uniquely positioned to proceed to alleviate pure fuel provide points for greater than 3 GW of present industrial and energy era clients who at present expertise limitations on provide within the area.

“We’re extraordinarily happy to increase our enterprise in Brazil and cement NFE as a number one supplier of unpolluted, dependable power to one of many quickest rising economies on the earth,” mentioned Wes Edens, Chairman and CEO of New Fortress Power.

“With right this moment’s acquisition of the PortoCem PPA, we add a contracted, long-duration asset that’s extremely complementary to our Brazilian footprint. This aligns with our technique to vertically combine and optimize our property in an effort to drive shareholder worth over the long-term,” added Andrew Dete, Managing Director of New Fortress Power.

“We’re happy to help NFE’s efforts to increase their actions in Brazil. This transaction will permit the Brazilian energy market to learn from clear capability reserve in step with the nation’s said purpose of offering dependable energy capability supporting renewable energy sources. Importantly as properly, the transaction allows Ceiba Power to proceed creating its LNG import power hub within the State of Ceara,” commented Emilio Vicens, CEO of Ceiba Power.

The closing of the transaction is topic to customary phrases and circumstances, together with regulatory approval for the switch of the PortoCem PPA to NFE terminal websites.

BTG Pactual acted as Ceiba Power’s monetary advisor.

Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/03012024/new-fortress-energy-adds-contracted-power-asset-to-existing-brazilian-infrastructure-portfolio/