New Fortress Energy (NFE) now becomes Brazil’s leading gas to power company, and, in a separate deal, it has also agreed to build an LNG-to-power project at Suape port.
With the acquisition of Golar LNG Partners (GMLP) and Hygo (a 50:50 joint venture between Golar LNG Limited and Stonepeak Infrastructure Fund II Cayman (G) Ltd, a fund managed by Stonepeak Infrastructure Partners and Golar LNG Partners), NFE has significantly ramped up its position in the LNG terminal sector and also adds LNG tonnage to its portfolio.
‘With a strong presence in Brazil and a world-class LNG shipping business, Hygo and GMLP are excellent additions to our efforts to accelerate the world’s energy transition,’ said Wes Edens, Chairman and CEO of NFE.
‘The addition of Hygo will quickly expand our footprint in South America with three gas-to-power projects in Brazil’s large and fast-growing market. With GMLP, we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline.’
Golar LNG Chairman Tor Olav Troim commented on the transaction: ‘They share our vision to provide cheaper and cleaner energy to a growing population. The consolidation of two of the entrepreneurial LNG downstream players gives the company improved access to capital and creates a unique world-leading energy transition company which Golar shareholders will benefit from being a part of going forward.’
With the acquisition of Hygo, NFE will acquire an operating floating storage and regasification unit (FSRU) terminal and a 50% interest in a 1500MW power plant in Sergipe, Brazil as well as two other FSRU terminals with 1200MW of power which are in advanced stages in Brazil. Hygo’s fleet consists of a newbuild FSRU and two operating LNG carriers.
NFE will also acquire a leading owner of FSRUs and LNG carriers as well as a pioneer in floating liquefaction technologies with the GMLP transaction. The addition of GMLP’s fleet of six FSRUs, four LNG carriers and a 50% interest in Trains 1 and 2 of the Hilli, a floating liquefaction vessel, is expected to support both NFE’s existing facilities and international project pipeline.
The closing of the transaction, which is subject to regulatory approval and other closing conditions, is expected to occur in the first half of 2021.
In another deal announced today (14 January), 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-powered plant at the Brazilian port of Suape.
‘The Suape Port provides an ideal location for NFE to bring clean and affordable energy to a rapidly growing region of Brazil,’ said Wes Edens.
‘Our LNG terminal and gas-fired power plant will 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.’
The terminal and power plant in the Suape Port are anticipated to begin commercial operations by the end of 2022.