New Fortress to sell Porto de Sergipe LNG-to-power plant to Eneva

U.S. energy company New Fortress Energy has agreed to sell 100 per cent of the equity interests of the Porto de Sergipe LNG-to-power plant to Brazilian power company Eneva.

On 1 June, New Fortress Energy announced that it has, along with its joint venture partner Ebrasil Energia, entered into a definitive share purchase agreement (SPA) with Eneva. Under the SPA, Eneva will acquire the Porto de Sergipe LNG-to-power plant for R$6.1 billion in cash ($1.29 billion).

Located in Barra dos Coqueiros in the country’s Northeast region, the 1,593 megawatt Sergipe Power Plant plays a critical role in Brazil’s energy security.

As part of the transaction, Eneva has agreed to buy 100 per cent of the shares of Centrais Elétricas de Sergipe Participações (CELSEPAR), which owns 100 per cent of the equity interests of the Sergipe Power Plant, and Centrais Elétricas Barra dos Coqueiros (CEBARRA), which owns 1.7 gigawatts of expansion rights adjacent to the Sergipe Power Plant, for a total implied enterprise value of approximately R$10.2 billion $2.16 billion).

Pursuant to the terms of the transaction, Eneva will be assuming the current debt of Centrais Elétricas de Sergipe (CELSE), the 100 per cent owned subsidiary of CELSEPAR.

“We look forward to maintaining a long-term relationship with Eneva and the CELSE Power Plant,” said Wes Edens, CEO of New Fortress Energy. “Eneva is one of Brazil’s leading power companies and a highly capable long-term owner and operator of this critical power asset for northeast Brazil. NFE will continue to operate the Golar Nanook, an FSRU that remains chartered to CELSE for the next 20 years.”

Subject to satisfying certain covenants and closing conditions, including approval by Eneva’s shareholders, the transaction is expected to close in the second half of 2022.

Accounting for NFE’s 50 per cent ownership of CELSEPAR, the transaction is projected to generate proceeds to NFE of approximately $550 million USD following the paydown of certain debt and other liabilities and net of transaction expenses.

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