Wednesday 13 January 2021

US-based energy infrastructure company New Fortress Energy Inc. (NASDAQ: NFE) has signed a memorandum of understanding with Petrobras Distribuidora S.A. and CCETC Brasil Holding Ltda. to acquire 288mw of 15-year power purchase agreements and intends to develop an LNG terminal and gas-fired power plant at the Suape Port in Brazil, the company said.

Under the MOU, BR and CCETC intend to sell to NFE 100% of their respective ownership in power generation companies Pecém Energia S.A. and Energética Camaçari Muricy II S.A., which hold PPAs totaling 288mw.

Execution of a definitive sale and purchase agreement is expected to occur in January, subject to final approval from the BR board of directors.

NFE has also entered into a definitive agreement to acquire CH4 Energia Ltda., which 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, following necessary approvals from the Agência Nacional de Energia Elétrica and other relevant regulatory authorities in Brazil.

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

The terminal and power plant in the Suape Port are anticipated to begin commercial operations by the end of 2022.

New Fortress Energy is a global energy infrastructure company founded to help accelerate the world's transition to clean energy.

The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.