LNG

New Fortress Energy, the New York-based developer of liquefied natural gas and power projects in Latin America and the Caribbean, has signed two long-term LNG agreements to acquire supplies to support its gas and power businesses in Puerto Rico, Mexico and Nicaragua.

US LNG equipment-maker Chart Industries said it received orders for its ISO containers for LNG applications with a second leasing order from Latin American and Caribbean project New Fortress Energy.

At the same time, Atlanta, Georgia-based Chart is expanding its liquid hydrogen and LNG businesses with strategic agreements.

Chart said the value of the latest New Fortress contract totaled $7.7 million.

“The first order of a similar size was booked in July 2020, and we look forward to our continued relationship with New Fortress as they execute their vision,” said chart.

“As a reminder, we see double digit near-term growth in our repair, service and leasing business, and continue to expect growing demand for LNG equipment for infrastructure,” stated the company.

Chart also completed the divestiture of its cryobiological products business, MVE Biological Products, to Cryoport Inc., headquartered in Brentwood, Tennessee, for $320M in cash.

In other activities, Chart and Plug Power Inc., based in Latham, New York state, executed a master supply agreement for Chart to deliver liquid hydrogen storage and transport equipment to Plug and its subsidiaries.

“We are excited about this agreement between two strong and experienced companies in the hydrogen value chain,” said Chart.

“In conjunction with the agreement, Chart received $7.8M of equipment orders from Plug that are booked in the third quarter of 2020,” it added.

Plug Power is a leader within the US hydrogen economy, using 40 tons of liquid hydrogen per day.

“Plug Power is well-positioned in the industry with capabilities in generation, liquefaction and distribution of hydrogen fuel, complementing its industry-leading position in the design, construction, and operation of more than 100 customer-facing hydrogen fueling stations,” explained Chart.

Char stated that it was close to executing a formal joint development agreement and entity with one of its key hydrogen customers which will focus on developing first-of-a-kind liquid hydrogen fueling applications.

“This agreement builds upon Chart’s 50-plus years of experience designing and manufacturing hydrogen equipment for storage, transport and power applications as well as our customer’s multi-station infrastructure in the United States for the expansion of fuel cell vehicles,” it explained.

“Timing this agreement with the California Energy Commission’s September 2020 grant funding for multi-year, multiple hydrogen fuel stations, the future of a scalable fueling infrastructure is accelerating,” added Chart.

New Fortress Energy, the developer of liquefied natural gas and power projects in Latin America and the Caribbean with new LNG import projects in Nicaragua and Mexico, said the company entered into a temporary supply termination agreement with the LNG subsidiary of UK utility Centrica.

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.