With FSRU on site, Brazilian LNG terminal put into operation

U.S. energy infrastructure player New Fortress Energy (NFE) has kicked off operations at its liquefied natural gas (LNG) import terminal in Santa Catarina, Brazil, following the arrival of a floating storage and regasification unit (FSRU).

According to New Fortress Energy, the Terminal Gas Sul (TGS) LNG terminal in Santa Catarina has now become operational. This occurred after the arrival of the FSRU Energos Winter, which was expected in January 2024. The company executed a definitive agreement with Petrobras in November 2023 for the FSRU with a capacity of 138,250 m3.

The FSRU will be sub-chartered by NFE through the remaining term of the Petrobras charter with U.S.-based Energos Infrastructure and then directly chartered by NFE on a long-term basis with Energos. TGS is an offshore LNG import terminal with a capacity of approximately 6 mtpa and a maximum send-out of 500 mmscf/day.

Aside from the FSRU Energos Winter, the terminal encompasses a 33-kilometer, 20-inch pipeline, which connects the facility to the existing inland Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) pipeline. NFE claims that TGS is a distinctive and promising prospect since it presents a high-growth opportunity for the company within the Brazilian power and gas markets.

The U.S. player believes that power and gas demand will substantially increase while the historical main source of gas supply from Bolivia has declined and is expected to further diminish in the near term. With this at the forefront, the firm highlights that the TGS terminal is essential infrastructure, which will play ”a vital role” in meeting the region’s power and gas requirements.

Furthermore, the terminal is connected by pipeline to the wider Brazilian gas market, including more than 3.5 GW of power that does not have firm, long-term gas supply contracts and more than 300 TBtu of industrial and residential gas consumers in the south region of Brazil.

Wes Edens, Chairman and CEO of New Fortress Energy, commented: “TGS is directly connected to more than 3.5 GW of existing power infrastructure that lacks firm supply agreements, making the terminal a key asset in Brazil’s evolving energy landscape.

“With numerous new power projects required to balance the grid in Brazil in the near term, NFE is poised to meet growing demand by leveraging its vertically integrated portfolio of LNG assets and expertise.” 

New Fortress Energy inked a definitive agreement in December 2023 to acquire a 1.6 GW capacity reserve from Ceiba Energy which would be transferred to new power assets connected to the firm’s existing LNG terminals in Brazil.

The start-up of the TGS LNG terminal comes only days after NFE welcomed the arrival of the FSRU Energos Celsius at its LNG terminal in Barcarena, Brazil.