New Fortress Energy Adds 1.6 GW, 15-year Contracted Power Asset to Existing Brazilian Infrastructure Portfolio
NFE to acquire 1.6 GW Capacity Reserve Contract (“PortoCem PPA” or “PPA”) in
Brazilfrom CEIBA Energy, a portfolio company of Denham Capital, in exchange for NFE Convertible Preferred Stock
NFE to transfer the PPA to power assets connected to NFE’s existing LNG terminals in
PPA adds more than
$280 millionof annual fixed capacity payments under a 15-year contract
PPA positions NFE as leading LNG-to-power company in
Brazil, the largest economy in South Americawith a population of over 200 million people who use less than 1/5 the energy of a U.S.citizen
- Aligns with NFE’s strategy of organic growth through existing LNG terminals, long-duration, contracted cash flows, and accretive infrastructure projects in existing geographies
Following customary closing conditions including regulatory approval for the transfer of the PPA in
NFE plans to leverage its existing infrastructure in
With the acquisition of the PPA, NFE adds significant downstream power infrastructure to its asset base, enabling further utilization of its existing terminal infrastructure in Barcarena and TGS. The TGS terminal is uniquely positioned to continue to alleviate natural gas supply issues for more than 3 GW of existing industrial and power generation customers who currently experience limitations on supply in the region.
“We are extremely pleased to expand our business in
“We are pleased to support NFE’s efforts to expand their activities in
The closing of the transaction is subject to customary terms and conditions, including regulatory approval for the transfer of the PortoCem PPA to NFE terminal sites.
BTG Pactual acted as Ceiba Energy’s financial advisor.
About Ceiba Energy
Founded in 2015, Ceiba Energy is an owner, developer, and operator of power generation assets in
Founded in 2004,
Our firm is built on a foundation of experience, fairness, economic rationale, flexibility and trust, and we bring these values into every opportunity we pursue. We believe our tactical familiarity within our industry sectors along with a disciplined approach centered around fairness and shared success make us an ideal partner.
For more information, visit www.denhamcapital.com
Cautionary Language Regarding Forward-Looking Statements
This communication contains forward-looking statements. All statements contained in this communication other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these terms or other comparable words. Forward looking statements include but are not limited to: our ability to close, and the timing of the closing, of our acquisition of the PPA, including our receiving the required regulatory approvals, expectations related to the amounts of annual fixed capacity payments under the PPA, our ability to transfer the PPA and expectations related to the timing for when our
These forward-looking statements are necessarily estimates based upon current information and involve a number of risks, uncertainties and other factors, many of which are outside of the Company’s control. Actual results or events may differ materially from the results anticipated in these forward-looking statements. Specific factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to: failure to achieve the terms and conditions to acquiring the PPA, including not receiving the required regulatory approvals, failure to receive the expected fixed payments under our contracts, unknown and unforeseen risks related to the development, construction or commissioning schedule of the Santa Catarina power complex, including failure to meet design and engineering specifications, incompatibility of systems, delays and schedule changes, high costs and expenses, and regulatory and legal challenges, among others; failure to receive expected financing on terms acceptable to NFE; receipt of permits, approvals and authorizations from governmental and regulatory agencies on a timely basis or at all; our inability to operationalize our plans for the projects and derive the benefits expected; common risks related to successful integration of the businesses; breach or failure by the parties to comply with the covenants and obligations under the agreements; nonpayment or nonperformance of obligations by the parties; inability to realize the anticipated benefits from the project or our partnerships; adverse regional, national, or international economic conditions, adverse capital market conditions and adverse political developments; business disruption following the transaction; and the impact of public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of NFE’s forward-looking statements. Other known or unpredictable factors could also have material adverse effects on future results.
Any forward-looking statement speaks only as of the date on which it is made, and we undertake no duty to update or revise these forward-looking statements, even though our situation may change in the future. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in NFE’s annual and quarterly reports filed with the