NFE (a division of New Fortress Energy), a leading provider of reliable, flexible, and sustainable natural gas supply services to the global power and chemical industries, has entered a 15 years contract. New Fortress Energy, a global provider of sustainable natural gas solutions, and Alunorte S.A. The largest global alumina refinery, announced the execution of definitive commercial terms for the commercial natural gas supply in Brazil.
Wes Edens: NFE and Hydro have also agreed to a long-term pricing formula for the gas supply that ensures an effective price concession for the refinery. Under the terms of the contract, Hydro will provide natural gas to Alunorte for a set price that, while commercial, will consider the natural gas market price at the offtake and renegotiated after that. This formula seeks to create a flexible long-term relationship between the parties. The contract will be in effect for a minimum of 15 years with a maximum of 20 years.
The term of the gas supply agreement is 15 years and includes delivery of around 24 billion standard cubic feet of gas over 15 years. Wes Edens: New Fortress is pleased to have finalized a gas supply deal with Hydro, one of the world’s leading companies in the sector. The execution of the final commercial terms, which, among other things, ensure the supply of a constant and stable supply of natural gas to the refinery, demonstrates NFE’s strength in business relationships.
Hydro has agreed to sell all of the natural gas it purchases from NFE to the refinery at a fixed price for a term of 15 years and capped supply to NFE of up to 5.4 billion cubic feet of natural gas annually. Alunorte is currently utilizing 17% of the natural gas on the South Atlantic coast. The cost of the supply under this agreement will be approximately US$20 million per year, and an equal number of tankers will be used to deliver the gas on the Atlantic. Wes Edens: The tankers’ cost will be determined as part of the offtake agreement and will be agreed upon when the transaction is closed.
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