New Fortress Energy signs 15-year gas supply agreement linked to LNG import and power project in Brazil

Tuesday, 14 December 2021
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New Fortress Energy Inc., the US company with LNG-to-power projects in South America, the Caribbean and Sri Lanka in Asia, has executed a 15-year natural gas supply agreement in Brazil.

New Fortress signed the deal with a subsidiary of Norsk Hydro ASA for the supply of natural gas to the Alunorte Alumina Refinery in the northern Brazilian state of Pará.

New York-based New Fortress said it was advancing two Brazilian projects, one in Barcarena for Norsk Hydro and a second in Santa Catarina in southern Brazil.

The company said it was also positioned to supply LNG through the Santa Catarina terminal for power plants with more than 400 megawatts of capacity from the second quarter of 2022.

“The long-term partnership between Hydro and NFE will greatly benefit the state of Pará and Barcarena community,” said Wes Edens, Chairman and Chief Executive of New Fortress.

“Supply of natural gas from NFE’s Barcarena LNG terminal will support Hydro in shifting Alunorte to cleaner fuels and will significantly advance Brazil’s energy transition,” added Edens.

Under the GSA, New Fortress has agreed to supply Hydro with the equivalent to around 1 million gallons of LNG per day to the refinery from the company’s Barcarena LNG receiving and regasification facility.

Emissions targets

New Fortress said the conversion from oil-based fuel supply to natural gas will reduce the refinery’s annual carbon-dioxide emissions by an estimated 700,000 tonnes per annum and support Hydro's greenhouse-gas emissions reduction target.

“We are committed to invest in developing the world’s largest alumina refinery, and to reduce the greenhouse gas emissions,” said John Thuestad, Executive Vice President for Hydro Bauxite and Alumina.

“The fuel switch is a milestone in our sustainability strategy and an important demonstration of our commitment to support local development in Pará state,” added Thuestad.

When completed in 2022, New Fortress said that the Barcarena terminal was expected to be the sole point of LNG imports in the state of Pará and the North region of Brazil.

“The terminal will support industrial development and reduce emissions and pollution in the environmentally sensitive Amazon region by providing a cleaner, affordable and reliable alternative to oil-based fuels,” New Fortress explained.

In its Asian activities, New Fortress recently agreed to invest in West Coast Power Ltd , the owner of the 310-megawatts Yugadanavi Power Plant based in the Sri Lankan capital Colombo while also developing an LNG facility off the coast.

As part of that transaction, New Fortress will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational now and an additional 700 MW is scheduled to be built, of which 350 MW will be operational by 2023.

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