New Fortress Energy targets LatAm expansion

Production at new LNG terminals in Mexico, Nicaragua, and Brazil will increase output for New Fortress Energy (NFE) to 3.6Mg/d (million gallons a day) soon, CEO Wes Edens informed during a presentation on NFE’s financial results for the first quarter ending March 31, 2021.

The company’s normalised sales volumes are currently at 2Mg/d.

At this time, the US-based company operates terminals in Jamaica and Puerto Rico.

CEO of New Fortress Energy Wes Edens

The 1.8Mg/d La Paz terminal in Mexico and the 2.4Mg/d Puerto Sandino terminal in Nicaragua are scheduled to come online in the next 60 days. Edens outlined that the addition of Brazilian terminals Barcarena, Suape and Santa Catarina in 2022 would help push sales volume to 16.2Mg/d.

NFE’s modular liquefaction facility project — Fast LNG —  is due online by end-2022.

Joint venture

The company is also planning a new joint venture (JV), Zero Parks, as a standalone public company for cleaner fuels. Renewable diesel and hydrogen targeted for the next 90 – 120 days should cost between US$200 million and US$300 million each.

An artistic rendering of the onshore LNG import terminal and merchant power plant at the Port of Pichilingue, Baja California Sur, Mexico, being built by New Fortress Energy.
(Photo New Fortress Energy)

The other party in the Zero Parks joint venture will be Fortress Transportation and Infrastructure LLC (NYSE: FTAI), a business with deep investment experience in transportation and high-utility infrastructure assets in the United States.

Zero Parks pairs FTAI’s transportation experience and infrastructure with NFE’s focus on hydrogen and clean energy to commercialise the rapidly growing opportunity for renewable and low-carbon fuels

NFE, meanwhile, has completed the private offering of US$1.5 billion of senior secured notes due 2026 that bear interest at 6.50 per cent per annum. The company issued the bonds at an issue price equal to 100 per cent of principal.

Commissioned in 2018, the offshore Old Harbour Terminal features an FSRU (Floating Storage & Regasification Unit) and natural gas pipeline. The facility supplies the 190 MW Old Harbour power plant and the ~150 MW Jamalco co-generation power plant, the Caribbean’s first gas-fired combined cycle power plant. (Photo: New Fortress Energy)

It also closed a $200 million senior secured Revolving Credit Facility to provide additional liquidity

NFE’s  Board of Directors approved a dividend of $0.10 per share, with a record date of June 1, 2021 and a payment date of June 11, 2021.