New Fortress Energy Places Terminal Gas Sul LNG Terminal In Santa Catarina, Brazil Into Operation

Author: Benzinga Newsdesk | March 01, 2024 09:02am

New Fortress Energy, Inc. (NASDAQ:NFE) ("NFE" or the "Company") today announced that its Terminal Gas Sul ("TGS") LNG terminal located in Santa Catarina, Brazil, is now operational with the Energos Winter Floating Storage Regasification Unit (FSRU) on-site.

TGS is an offshore LNG import terminal with a capacity of approximately 6 MTPA (300 TBtu) and maximum send out of 500 mmscf/day. The terminal includes the Winter FSRU and a 33-kilometer, 20-inch pipeline, which connects the facility to the existing inland Transportadora Brasileira Gasoduto Bolívia-Brasil ("TBG") pipeline.

TGS stands as a distinctive and promising prospect for NFE, as it presents a high-growth opportunity for the Company within the Brazilian power and gas markets. The terminal is connected by pipeline to the wider Brazilian gas market, including more than 3.5 GW of power that does not have firm, long-term gas supply contracts and more than 300 TBtu of industrial and residential gas consumers in the south region of Brazil.

Both power and gas demand are set to substantially increase, while the historical main source of gas supply from Bolivia has declined and is expected to further diminish in the near term. The TGS terminal is essential infrastructure and will play a vital role in meeting the region's power and gas requirements.

"TGS is directly connected to more than 3.5 GW of existing power infrastructure that lacks firm supply agreements, making the terminal a key asset in Brazil's evolving energy landscape. With numerous new power projects required to balance the grid in Brazil in the near term, NFE is poised to meet growing demand by leveraging its vertically integrated portfolio of LNG assets and expertise," said Wes Edens, Chairman and CEO of New Fortress Energy.

Posted In: NFE