New Fortress Energy Signs Agreements with Unigel to Provide Natural Gas to Fertilizer Plants in the States of Sergipe and Bahia
New Fortress Energy (NASDAQ: NFE) has signed two Gas Supply Agreements with Unigel Participações, aimed at supplying up to 41 Tbtu of natural gas annually to their fertilizer plants in Brazil for a five-year term starting Q1 2022. This partnership is designed to enhance Unigel’s competitiveness by providing a reliable energy source, while also leveraging NFE’s LNG import terminals. The deal is contingent upon regulatory approvals. Unigel's plants can produce over 3,000 tons of urea daily, reflecting a significant industrial capacity in Brazil.
- NFE's agreements with Unigel could enhance its revenue by providing a stable natural gas supply.
- The partnership with Unigel may reinforce NFE's position in the Brazilian energy market.
- The strategic supply agreements support the growth of local industries in Northeast Brazil.
- The agreements are subject to regulatory approvals, which may delay implementation.
- Dependence on regulatory outcomes introduces uncertainty to future gas supply.
New Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) announced today that it has executed two Gas Supply Agreements (“GSA”) with subsidiaries of Unigel Participações (“Unigel”) to supply natural gas to the Unigel Agro-BA and Unigel Agro-SE fertilizer plants (the “Fertilizer Plants”) located in the Brazilian states of Bahia and Sergipe, respectively. The agreements also include an option to supply Unigel’s chemicals facility in Candeias, state of Bahia, Brazil.
In total, NFE expects to supply Unigel with up to 41 Tbtu of natural gas annually (equivalent to approximately 1.4 million gallons of LNG per day) for a 5-year term beginning in Q1 2022.
“We are excited to become the strategic gas supply partner of Unigel, one of the premier industrial companies in Brazil,” said Wes Edens, Chairman and CEO of NFE. “This partnership demonstrates the value our LNG import terminals will provide to customers in Brazil as we bring affordable, reliable energy supply and support industry throughout Brazil.”
Andrew Dete, Managing Director at NFE added, “NFE is proud to partner with Unigel to support domestic fertilizer production in Northeast Brazil. These agreements are great examples of NFE’s mission to partner with leading industrial customers in Brazil to provide reliable energy supply.”
The supply of gas from NFE’s strategically-located Suape and Sergipe LNG terminals in Brazil’s northeast will connect Unigel’s operations to the global LNG and natural gas markets as well as significantly reduce pipeline transportation charges.
“We believe that this 5-year term agreement with NFE will provide a more reliable, stable operation for our plants in the long run, which is key to improve our competitiveness and solidify our commercial presence in Brazil,” said Roberto Noronha Santos, CEO of Unigel.
Unigel’s Fertilizer Plants are capable of producing over 3,000 tons per day of urea in total.
The transaction is subject to the receipt of certain regulatory approvals and other customary conditions.
About New Fortress Energy
New Fortress Energy is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy. The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.
About Unigel Participações
Unigel is one of the largest chemical companies in Brazil, holding a leading position in styrenics, acrylics and nitrogen fertilizers in Latin America. The company, with industrial facilities in Brazil and Mexico, makes itself present in day-to-day life serving multiple customers across a broad spectrum of industries including home appliances & electronics, automotive, paints and coatings, construction, pulp and paper, packaging, health and safety, textile, mining and agriculture.
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,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. Forward looking statements include: the supply of natural gas to the Fertilizer Plants including the locations from where we will supply and the expected annual quantities and delivery dates; if and when the option to supply Unigel’s chemical facility will be exercised; the value our LNG import terminals will provide to customers in Brazil; the reduction of pipeline transportation charges; and other statements regarding NFE’s operations, goals and strategy.
These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: risks related to the development, construction or commissioning schedule for our LNG terminals may be longer than we expect; the funding of the project may not be possible on the terms we expect; we will be unable to operationalize our plans for the rights and key permits to develop the LNG terminals; the receipt of certain regulatory approvals; and that we will not be able to provide natural gas to customers as we currently expect. 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, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 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 in our annual report, quarterly and other reports filed with the SEC, which could cause its actual results to differ materially from those contained in any forward-looking statement. We undertake no duty to update these forward-looking statements even though the situation may change in the future.
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