New Fortress Energy Brazil Signs Terminal Lease Agreement with TGS
New Fortress Energy Inc. (NASDAQ: NFE) (“NFE” or the “Company”) today announced a major milestone for its Brazil operations, confirming that its Brazilian platform has entered into a long-term lease and capacity agreement (the “Lease Agreement”) for its Terminal de Gás Sul (“TGS”) LNG import terminal, located in Santa Catarina, Brazil. The agreement, which is slated to commence in August 2026, represents the first commercial commitment for TGS and underscores the strategic value of the Company’s infrastructure in the region.
The Lease Agreement is expected to contribute approximately $50 million in annual EBITDA by 2027, providing immediate, contracted cash flow while positioning TGS as a key cash-generating asset for NFE’s Brazil business. This agreement marks a significant step in the commercialization of TGS, reflecting the growing demand for reliable, flexible, and dispatchable natural gas infrastructure to support power generation in southern Brazil.
TGS is strategically located along the southern coast of Brazil, offering critical access to liquefied natural gas for a region that faces limited alternative supply options. Its flexible LNG import capabilities enable the delivery of natural gas to power generators and industrial customers across southern Brazil, supporting reliable electricity production and enhancing energy security in a region with historically constrained gas supply.
Leandro Cunha, Managing Director of New Fortress Energy Brazil, commented on the significance of the agreement, stating, “This agreement delivers immediate, contracted cash flow and highlights the strategic value of our infrastructure platform in Brazil. TGS is now positioned as a stable, cash-generating asset with meaningful long-term upside.” He further emphasized that the terminal’s commercial launch strengthens NFE’s integrated LNG-to-power strategy in the country, providing both operational flexibility and a platform for future growth.
In addition to these near-term cash flows, TGS is expected to play a foundational role in supporting NFE’s long-term growth in Brazil. Notably, the terminal is set to supply natural gas to the Company’s UTE Lins 2 power project, a greenfield capacity awarded under Brazil’s recent power generation auction. UTE Lins 2 is anticipated to begin operations in 2031, creating a strategic link between NFE’s LNG infrastructure and its power generation assets, further cementing TGS as a cornerstone of the Company’s integrated energy platform in Brazil.
The combination of near-term contracted revenues beginning in 2026 and long-term growth opportunities tied to greenfield power projects highlights TGS as both a financial and operational anchor for NFE Brazil. Beyond its current agreements, the terminal offers significant potential for expanded utilization, including future contracts with regional power generators and industrial customers seeking reliable natural gas supply. This flexibility positions TGS as a versatile asset capable of adapting to evolving market needs while supporting Brazil’s energy transition objectives.
TGS’s operational design emphasizes flexibility, efficiency, and reliability. The facility is equipped to receive, store, and regasify LNG from global suppliers, providing local markets with a dependable source of natural gas. By enabling dispatchable power generation, TGS contributes to grid stability and helps integrate renewable energy sources, which are increasingly variable in southern Brazil. This aligns with NFE’s broader mission to provide low-carbon, scalable energy solutions in emerging markets.
The Lease Agreement further reinforces NFE’s commitment to developing critical energy infrastructure that combines immediate financial returns with long-term growth potential. By commercializing TGS and linking it to the future UTE Lins 2 project, NFE Brazil establishes a robust LNG-to-power ecosystem that addresses both market demand and regional energy reliability challenges.
As Brazil continues to expand its energy infrastructure and diversify its gas supply, assets like TGS play a central role in supporting sustainable, reliable, and flexible power generation. The terminal’s ability to serve multiple customers and adapt to changing market conditions provides NFE with strategic optionality, enabling the Company to capitalize on emerging opportunities across the region’s growing energy sector.
Looking ahead, NFE Brazil plans to explore additional avenues to maximize the terminal’s utilization. Potential opportunities include supplying other greenfield power projects, entering into industrial supply agreements, and leveraging TGS’s flexible infrastructure to participate in new LNG trading and logistics initiatives. This integrated approach positions NFE to capture value across the full LNG-to-power value chain, delivering benefits for both the Company and its stakeholders.
Leandro Cunha concluded, “TGS represents a key component of our strategy to build a leading integrated energy platform in Brazil. The combination of near-term contracted revenues and future growth tied to new power generation projects underscores the unique value proposition of our infrastructure investments. We look forward to unlocking the full potential of TGS for our customers, shareholders, and the broader energy ecosystem in southern Brazil.”
With the commencement of operations scheduled for August 2026, TGS is poised to become a significant contributor to NFE Brazil’s financial performance while reinforcing the Company’s commitment to advancing energy infrastructure in emerging markets. The terminal exemplifies NFE’s approach of combining strategic asset development with market-driven commercialization, providing both immediate returns and long-term growth potential in the rapidly evolving Brazilian energy landscape.
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