New Fortress Energy begins construction of Brazil LNG terminal

New Fortress Energy (NFE) has started construction of its Gás Sul liquefied natural gas (LNG) regasification terminal (TGS) in Brazil’s Santa Catarina state, a company spokesperson confirmed to BNamericas. 

The first construction phase involves the maritime terminal and is scheduled to finish in February 2022. The remaining steps include the onshore and offshore pipelines and the custody transfer station and will follow concurrently. 

In March, NFE will start supplying gas to SCGás, under a five-year contract involving 274Mm3 (million cubic meters), or 150,000m3/d.  

The project entails the installation of a floating storage and regasification unit (FSRU). After regasification, it will be transported via underwater pipeline in Babitonga bay, which will surface in Pontal, Itapoá municipality, and extend 31km to Garuva, where it will connect to the Bolivia-Brazil gas pipeline (Gasbol).

Source: TGS

The EPC contract for the LNG terminal has been signed with engineering firm Tenenge. 

Budgeted at around 400mn reais (US$71.8mn), TGS will store up to 160,000m3 of LNG and regasify 15Mm3/d. Besides Santa Catarina, it is expected to meet natural gas demand from neighboring Paraná state. 

NFE already operates one LNG terminal in Brazil, supplying the Porto de Sergipe thermoelectric power plant in Sergipe state. The project is owned by Centrais Elétricas de Sergipe (Celse), in which NFE holds a 50% stake. 

Through Centrais Elétricas de Barcarena (Celba), the group plans to build an LNG terminal in Pará state, which will supply the Alunorte Alumina refinery for 15 years. 

NFE’s Barcarena terminal is expected to be completed in early 1Q22, and the Alunorte refinery is expected to complete the conversion to natural gas by 1Q23.

Another NFE highlight in Brazil is the contract signed in August with Unigel to supply natural gas for the group’s fertilizer plants in Bahia and Sergipe states, beginning in the first quarter of 2022. 

The terminals will be in Sergipe (Celse) and Pernambuco. The latter relies on authorization to be deployed at Suape port.