New Fortress Energy expected to offload Brazil projects

Bnamericas Published: Monday, October 17, 2022
New Fortress Energy expected to offload Brazil projects

New Fortress Energy (NFE) is likely to sell its projects in Brazil, three sources familiar with the matter told BNamericas. 

The assets involved are the company’s Gás Sul (TGS) and Barcarena LNG regasification terminals in Santa Catarina and Pará states, respectively. 

As LNG prices skyrocketed amid the war in Ukraine, reaching over US$30/MMBTU, the company opted to offer its floating, storage and regasification units (FSRUs) to the European market, aiming at higher gains. 

The Barcarena project includes a thermal plant that attracted the interest of Eneva, but no deal has been closed so far, according to a source. 

The power generation unit has a contract to supply electricity for Hydro's Alunorte alumina refinery. 

Earlier this month, Eneva bought NFE’s and EBrasil’s stakes in Centrais Elétricas de Sergipe Participações (Celsepar) for 6.1bn reais (about US$1.27bn). 

And, last week, antitrust authority Cade approved the acquisition by Ebrasil of NFE’s Pecém Energia and Energética Camaçari Muricy II specific purpose companies (SPEs). 

Regarding the TGS project, New York-based NFE is reportedly facing difficulties to find potential buyers. 

“Who will take the risk of bringing an FSRU to Brazil? The payoff doesn't justify it, given the international context, especially Europe,” a source told BNamericas. 

According to NFE’s latest projections, the beginning of operations of the TGS and Barcarena regasification terminals is scheduled for 2023.  

When contacted by BNamericas, the company said it would not comment on the subject because it is in a quiet period ahead of the release of its third quarter financial results.

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