New Fortress Energy, the New York-based developer of liquefied natural gas import and export projects, has entered into a definitive agreement to charter the “Energos Winter”, a floating storage and regasification unit (FSRU), from Brazilian state company Petróleo Brasileiro (Petrobras) and with the FSRU being deployed in the south of the country.
NFE said that the “Energos Winter” charter from Petrobras would start in December and the FSRU would “immediately” be deployed to the Terminal Gas Sul (TGS), NFE’s newest LNG import facility in the state of Santa Catarina.
The US company said that the TGS terminal project would thus begin commercial operations ahead of schedule in January 2024.
NFE is currently completing two terminals projects in Brazil, one at Santa Catarina and a second at Barcarena in the state of Pará in the far northeast of Brazil.
Growth opportunity
“We are extremely pleased to reach this agreement with Petrobras and begin operations at the TGS terminal in Santa Catarina, Brazil ahead of schedule in January 2024,” said NFE Managing Director Andrew Dete.
“The TGS terminal is a unique, high-growth opportunity for NFE, as connection to the pipeline system in south Brazil offers a diverse and near-term set of opportunities across power and gas supply,” Dete explained.
The “Energos Winter” will be sub-chartered by NFE through the remaining term of the Petrobras charter with Energos Infrastructure and then direct-chartered by NFE on a long-term basis with Energos.
“This will enable NFE to commence commercial operations at TGS in January 2024 and continue uninterrupted service on a long-term basis,” said NFE.
Energos Infrastructure, the owner of the “Energos Winter” FSRU, is owned 80 percent by funds managed by New York equity firm Apollo and 20 percent owned by NFE.
LNG production
NFE is on course to start LNG production and export operations by early 2024 at Mexico’s first production facility with capacity of 1.4 million tonnes per annum.
NFE’s “Fast LNG” project comprises modular, midsize liquefaction technology with jack-up rigs to enable lower costs
The US company and Mexico's state-owned power utility, the Comisión Federal de Electricidad (CFE), have set up the LNG hub in Altamira in the Gulf of Mexico to convert Mexican natural gas into LNG for export.
Each of NFE’s three parts of the first “Fast LNG” project were completed at the Kiewit Offshore Services yard in Ingleside in Texas.
The company said that the first “FLNG 1” liquefaction operating facility is being deployed in Mexican waters at a cost of just $1.3 billion, far below the cost of other proposed projects.
