NFE closes asset-based financing to fully fund its Barcarena power plant

November 7, 2023, by Aida Čučuk

U.S. energy infrastructure company New Fortress Energy (NFE) has executed definitive agreements with the Brazilian development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and funds managed by Lumina Capital Management and BTG Asset Management to fund up to $575 million in asset-based financing.

Illustration only; Archive; Courtesy of New Fortress Energy

According to NFE, these financings will be used to complete the construction of its 630 MW Barcarena power plant, which is approximately 37% completed pursuant to a fixed-price, date-certain EPC contract with Mitsubishi and Toyo Setal.

The plant, located adjacent to NFE’s LNG import terminal at the mouth of the Amazon river, is said to be on schedule to commence operations in the third quarter of 2025 under a 25-year power purchase agreement (PPA) with several electricity distribution companies in Brazil.

NFE said the company’s planned conversion of the Energos Celsius from an LNG carrier to a floating storage and regasification unit (FSRU) remains on schedule for November 2023 completion, before delivery and first gas to customers at the Barcarena import terminal beginning at year-end 2023. Energos Celsius is chartered by NFE from Energos Infrastructure on a long-term basis.

Andrew Dete, Managing Director of NFE, commented: “This power plant will contribute to our portfolio of contracted, long-term cash flows in Barcarena beginning in the third quarter of 2025. This will follow contracted cash flows at our Barcarena terminal from Norsk Hydro and Gás do Pará that commence at year-end 2023.”

To note, this week, NFE also announced the execution of a definitive agreement to charter the FSRU Energos Winter from Brazilian state-owned oil and gas giant Petrobras starting in December 2023.

According to NFE, this FSRU will be deployed to Terminal Gas Sul (TGS), NFE’s newest LNG import terminal in Santa Catarina, Brazil, which is expected to start commercial operations ahead of schedule in January 2024.