New Fortress Energy Adds 1.6 GW, 15-year Contracted Power Asset to Existing Brazilian Infrastructure Portfolio

New Fortress Energy Inc. (NASDAQ: NFE) (the “Company”) announced that it has entered into a definitive agreement to acquire a 1.6 GW Capacity Reserve Contract (“PortoCem PPA” or “PPA”) from Ceiba Energy, a portfolio company of Denham Capital, in exchange for newly issued NFE redeemable Series A Convertible Preferred Stock and the assumption of certain liabilities from a subsidiary of Ceiba Energy.

Following customary closing conditions including regulatory approval for the transfer of the PPA in Brazil, the PPA will contribute firm capacity payments of $280 million per annum through its 15-year contract life. NFE expects the transaction to close in March 2024, with project cash flows expected to begin no later than July 2026.

NFE plans to leverage its existing infrastructure in Brazil and transfer the PPA to new power assets connected to NFE’s existing Brazilian LNG terminals – Barcarena and Terminal Gas Sul (“TGS”). NFE intends to utilize its existing infrastructure in place in Barcarena to strategically expand its power complex by 1.2 GW, with an expected Commercial Operations Date (“COD”) for the expansion in 2026. NFE’s original 630 MW development in Barcarena remains on schedule for COD in the third quarter of 2025. NFE plans to transfer the remaining 0.4 GW of the PPA to another power generation asset that connects to its TGS terminal. By using its existing asset base, NFE expects to reduce costs and generate incremental throughput and earnings at its terminals.

With the acquisition of the PPA, NFE adds significant downstream power infrastructure to its asset base, enabling further utilization of its existing terminal infrastructure in Barcarena and TGS. The TGS terminal is uniquely positioned to continue to alleviate natural gas supply issues for more than 3 GW of existing industrial and power generation customers who currently experience limitations on supply in the region.

“We are extremely pleased to expand our business in Brazil and cement NFE as a leading provider of clean, reliable energy to one of the fastest growing economies in the world," said Wes Edens, Chairman and CEO of New Fortress Energy. “With today’s acquisition of the PortoCem PPA, we add a contracted, long-duration asset that is highly complementary to our Brazilian footprint. This aligns with our strategy to vertically integrate and optimize our assets in an effort to drive shareholder value over the long-term,” said Andrew Dete, Managing Director of New Fortress Energy.