New Fortress ties down LNG supplies through 2027

NEW Fortress Energy Inc (NFE) announced on July 7, 2021, that it has reached an agreement for liquefied natural gas (LNG) supply that will cover the remaining volumes for NFE’S existing natural gas and electricity businesses through the end of 2027.

Management said the company, upon all deal closures, will have purchased LNG volumes equal to approximately 100 per cent of its expected needs for its current portfolio of five terminals and assets across the Caribbean, Mexico and Central America for the next six years.

The company also anticipates securing additional LNG supply volumes later in 2021 to support NFE’S four terminals in Brazil, which are all expected to be operational in 2022.

Source suppliers and the cost of the deals were not disclosed.

Wes Edens, chairman and CEO of NFE, stated in the company disclosure, “Our next step is to extend this strategy to our Brazilian terminals. This work is well under way and will be executed in coordination with NFE’S downstream developments in the country.”

Eden added, “With commercial operations expected to begin within days in Mexico and next month in Nicaragua, this will ensure we provide our customers a reliable and affordable supply of cleaner energy. We will look to secure additional volumes later this year ahead of commencing our Brazil operations and as we continue to grow our customer base across all our terminals.”

Kasciandro Senem, LNG managing director of NFE, said the company has executed its strategy to neutralise LNG exposure by securing LNG supply contracts that meet downstream needs.

He added, “Our next step is to extend this strategy to our Brazilian terminals. This work is well under way and will be executed in coordination with NFE’S downstream developments in the country.”

This agreement on LNG supply is subject to customary documentation.

New Fortress Energy is a global energy infrastructure company which funds, builds and operates natural gas infrastructure and logistics.