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NFE and Hydro execute gas supply agreement

Published by , Assistant Editor
LNG Industry,

New Fortress Energy Inc. has announced the execution of a 15-year gas supply agreement (GSA) with a subsidiary of Norsk Hydro ASA for the supply of natural gas to the Alunorte Alumina Refinery in Pará, Brazil.

“The long-term partnership between Hydro and NFE will greatly benefit the state of Pará and Barcarena community,” said Wes Edens, Chairman and CEO of New Fortress Energy. “Supply of natural gas from NFE’s Barcarena LNG terminal will support Hydro in shifting Alunorte to cleaner fuels and will significantly advance Brazil’s energy transition.”

Under the GSA, NFE has agreed to supply Hydro with 29.5 trillion Btu of natural gas annually (equivalent to approximately 1 million gal./d of LNG) to the refinery from NFE’s Barcarena LNG receiving and regasification terminal located in the state of Pará. The conversion from oil-based fuel supply to natural gas will reduce the refinery’s annual CO2 emissions by an estimated 700 000 tpy and support Hydro's global commitment to reduce greenhouse gas (GHG) emissions by 30% by 2030.

“We are committed to invest in developing the world’s largest alumina refinery, and to reduce the GHG emissions,” said John Thuestad, Executive Vice President for Hydro Bauxite & Alumina. “The fuel switch is a milestone in our sustainability strategy and an important demonstration of our commitment to support local development in Pará state.”

When completed in 2022, NFE’s Barcarena LNG terminal is expected to be the sole point of LNG imports in the state of Pará and the North region of Brazil. The terminal will support industrial development and reduce emissions and pollution in the environmentally sensitive Amazon region by providing a cleaner, affordable, and reliable alternative to oil-based fuels.

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