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New Fortress Energy and Unigel sign gas supply agreements

Published by , Assistant Editor
LNG Industry,

New Fortress Energy Inc. (NFE) has announced 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 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 trillion Btu of natural gas annually (equivalent to approximately 1.4 million gal./d of LNG) for a five-year term beginning in 1Q22.

“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 five-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 3000 tpd of urea in total.

The transaction is subject to the receipt of certain regulatory approvals and other customary conditions.

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