LNG

New Fortress Energy, the New York-based LNG developer in the Caribbean and Central America,  said it was progressing with construction of a Mexican liquefied natural gas import and regasification terminal in the port of Pichilingue on the Pacific Coast.

New Fortress Energy, the owner of liquefied natural gas facilities in Florida and in Jamaica and projects in Puerto Rico, has signed an agreement to supply LNG to Nicaragua and to deploy a floating import as part of a power venture.

New Fortress also signed a 25-year power purchase agreement with two of Nicaragua’s main electricity distribution companies.

As part of the agreement, New Fortress will construct a natural gas-fired power plant with a capacity of around 300 megawatts near Puerto Sandino to supply power to Nicaragua’s national electric grid. 

“The plant is expected to contribute to the advancement of the country’s long-term economic development while also assisting the transition to lower-carbon, more environmentally friendly energy,” said New Fortress.

The US company, whose corporate headquarters are in New York, will supply natural gas to the plant via a floating storage and regasification unit (FSRU) offshore Puerto Sandino on the Pacific Coast. 

The port was formerly known as Puerto Somoza before the 1979 revolution in the Central American nation.

Under the terms of the power agreement, New Fortress is expected to provide natural gas over 25 years, which will be the equivalent of about 700,000 gallons of LNG (60,000 MMBtu) per day.

“The project is expected to be funded with cash on hand and funds from operations,” said New Fortress.

“The terminal and the plant are anticipated to begin commercial operations in the second half of 2021, subject to various conditions, including obtaining required licenses and permits,” added the company.

New Fortress recently signed a long-term LNG supply agreement for eight cargoes a year for 10 years through January 2030.

The New Fortress company is led by Wes Edens, co-founder of the private equity group Fortress Investment.

New Fortress made its debut on the Nasdaq global exchange in January 2019 after an initial public offering. 

Its main corporate focus now is introducing LNG to markets that lack access to the fuel.

In addition to its 100,000 gallons per day liquefaction plant in Miami, it operates a floating LNG terminal in Montego Bay, Jamaica, along with a fuel-handling facility and an associated contract in the US territory of Puerto Rico.

The New Fortress Puerto Rico subsidiary, NFEnergía, has also entered into a contract with the Puerto Rico Electric Power Authority for the supply of natural gas and conversion of two out of six units at the San Juan combined-cycle power plant. 

The Miami facility began operations in April 2016 and enables the company to produce LNG for export in intermodal ISO containers to the Caribbean and to small-scale customers in southern Florida.

The company is also looking at developing a Pennsylvania LNG distribution facility. 

New Fortress Energy, the owner of LNG facilities in Florida and in Jamaica and projects in Puerto Rico and the US northeast, said it signed a long-term LNG supply agreement for eight cargoes a year for 10 years through January 2030.

The New Fortress company is led by Wes Edens, co-founder of the private equity group Fortress Investment.

“This agreement will support the continued growth of New Fortress’ customer base in international markets as the company develops LNG terminals and natural gas infrastructure,” said the company without disclosing who the seller was.

New Fortress made its debut on the Nasdaq global exchange in January 2019 after an initial public offering. 

Its main corporate focus now is introducing LNG to markets that lack access to the fuel.

“This agreement supports our efforts to spur economic growth and reduce emissions as we deliver more affordable and cleaner energy to our customers,” said New Fortress Chairman and CEO Edens. 

“We evaluated a broad range of competitive offers to meet the expansion of our LNG terminals across international markets,” he added.

“We’re pleased to take advantage of the dislocation in global LNG markets and secure 10 years of offtake for our growing business,” stated the CEO.

In addition to its 100,000 gallons per day liquefaction plant in Miami, it operates a floating LNG terminal in Montego Bay, Jamaica, along with a fuel-handling facility and an associated contract in the US territory of Puerto Rico.

The New Fortress Puerto Rico subsidiary, NFEnergía, has entered into a contract with the Puerto Rico Electric Power Authority for the supply of natural gas and conversion of two out of six units at the San Juan combined-cycle power plant. The initial term of the contract is five years.

The Miami facility began operations in April 2016 and enables the company to produce LNG for export in intermodal ISO containers to the Caribbean and to small-scale customers in southern Florida.

The company is also looking at developing a Pennsylvania LNG distribution facility.

New Fortress Energy has closed its first issuance of a fully committed $180 million bond facility through a subsidiary to pursue its growing liquefied natural gas and power activities in the Caribbean region.

New Fortress, the owner of LNG facilities in Florida and in Jamaica, said its NFE South Power Holdings unit arranged the transaction through NCB Capital Markets of Barbados.

Under the facility, the New Fortress unit issued $136.3M of 8.25 percent secured long-term fixed-rate bonds due in 2034 and up to $43.7M of 11 percent unsecured fixed-rate bonds due in 2036.

Some $117M of bonds were sold and New Fortress has a commitment from NCB Capital to purchase the outstanding bonds upon completion in the first quarter of 2020 of construction of New Fortress’s combined heat and power facility at Clarendon in Jamaica.

Net proceeds from the bond sale will be used to complete the construction of the power plant and to reimburse shareholder advances made by New Fortress.

The New Fortress company is led by Wes Edens, co-founder of the private equity group Fortress Investment.

Among his other activities, Edens is also co-owner of the English Premier League soccer club Aston Villa whose most high-profile fan is Prince William, elder son of the late Princess Diana and second in the line of succession to the British throne.

New Fortress made its debut on the Nasdaq global exchange in January 2019 after an initial public offering. Its main corporate focus now is introducing LNG to markets that lack access to the fuel.

In addition to its 100,000 gallons per day liquefaction plant in Miami, it operates a floating LNG terminal in Montego Bay, Jamaica, along with a fuel-handling facility in the US territory of Puerto Rico.

The Miami facility began operations in April 2016 and enables the company to produce LNG for export in intermodal ISO containers to the Caribbean and to small-scale customers in southern Florida.

“We are very pleased to partner with NCB Capital and the investment community in the Caribbean for the financing of the region’s first large scale gas-fired, co-generation power plant,” said Edens, the New Fortress Chairman and Chief Executive.

“We wanted to enhance our great partnership with Jamaica by giving investors a stake in this historic achievement by the country,” added Edens.

“Jamaica continues to be a model for the Caribbean, and we’re looking forward to turning on the plant in the coming months,” stated the CEO.

NCB Capital said it decided to partner with New Fortress because of the work that they have been doing across the Caribbean region in bringing in cleaner and cheaper energy.

“Liquefied natural gas is a cleaner and more efficient source of energy, and one of its major customers, the Jamalco Alumina plant, is a significant player in the mining industry which is a major contributor to Jamaican GDP,” said Steven Gooden, CEO NCB Capital.

“Lower energy costs bode well for us as consumers and the economy as a whole,” added Gooden.