NFE Inks Deal for Brazil LNG Hub, Targeting Southern Energy Market

NEW YORK, NY – March 31, 2026 – New Fortress Energy Inc. (NASDAQ: NFE) has secured a pivotal long-term lease and capacity agreement for its Terminal de Gás Sul (TGS) liquefied natural gas (LNG) import terminal in Santa Catarina, Brazil, a move that commercializes a key strategic asset and promises to reshape the energy landscape of the country's southern region.

The agreement, set to commence in August 2026, marks a significant milestone for the global energy infrastructure company. NFE projects the deal will generate approximately $50 million in annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by 2027, establishing a stable, contracted revenue stream for its Brazilian operations.

This development comes as NFE navigates a significant corporate restructuring aimed at shoring up its financial position. The commercialization of TGS is a critical step in demonstrating the value of its Brazilian asset portfolio, which is slated to be spun off into a new, independent entity.

Bolstering a Region's Energy Security

The TGS terminal is strategically positioned to address a long-standing vulnerability in southern Brazil: a growing demand for energy coupled with limited access to natural gas. Santa Catarina, a state with the second most competitive industrial structure in Brazil and the nation's fourth-largest consumer of natural gas for vehicles, has historically faced supply constraints. The TGS facility is engineered to directly confront this challenge.

With a regasification capacity of 15 million cubic meters per day, the terminal provides a powerful new source of flexible gas supply. Crucially, a 31-kilometer pipeline connects TGS to the Brazil-Bolivia Gas Pipeline (Gasbol), allowing the imported gas to be injected into the national grid and distributed to a wide range of industrial and residential customers. This integration is expected to enhance grid stability and provide a reliable fuel source for power generation, especially during periods when Brazil's hydropower output is low.

According to company projections, the terminal is positioned to serve over 3.5 gigawatts of power infrastructure in the region that currently lacks firm, long-term gas supply contracts. By providing this vital link, TGS is set to play a key role in supporting reliable, dispatchable power, underpinning economic activity and industrial growth across southern Brazil.

A Blueprint for Integrated Growth Amid Restructuring

For New Fortress Energy, the TGS agreement is more than a standalone lease; it is a cornerstone of its integrated LNG-to-power strategy in Brazil. The deal highlights a business model focused on developing, owning, and operating infrastructure across the entire energy value chain, from LNG procurement and shipping to regasification and power generation.

“This agreement delivers immediate, contracted cash flow and highlights the strategic value of our infrastructure platform in Brazil,” said Leandro Cunha, Managing Director of New Fortress Energy Brazil, in a statement. “TGS is now positioned as a stable, cash-generating asset with meaningful long-term upside.”

This long-term upside is directly tied to NFE’s own power development projects. The TGS terminal is slated to supply the company’s UTE Lins 2 power project, a 730-megawatt natural gas-fired thermal plant in São Paulo. That project, a greenfield capacity award from a recent government auction, represents a R$4 billion investment and is expected to commence operations in 2031, creating a built-in, long-term customer for the terminal's capacity.

The TGS deal arrives at a critical juncture for NFE. The company has recently faced financial headwinds, reporting unprofitability and carrying a high debt-to-equity ratio of 4.45. In response, NFE is executing a major restructuring to split the company into two separate entities. Its Brazilian assets, including the TGS and Barcarena terminals and associated power plants, will form “BrazilCo,” an independent platform majority-owned by institutional investors. This move is designed to deleverage the parent company and allow the Brazilian operation to function as a well-capitalized, self-sufficient energy provider. Securing a long-term, cash-generating contract for TGS is fundamental to proving the viability and attractiveness of this new Brazil-focused entity.

Brazil's Expanding LNG Bet and the Competitive Landscape

The TGS terminal’s commercialization is reflective of a broader shift in Brazil's energy matrix. The nation is increasingly turning to LNG as a critical balancing fuel to complement its vast hydroelectric resources, which are susceptible to climate-driven variability. This trend has been accelerated by market reforms, most notably the “New Gas Law” enacted in 2020, which aims to break the historical dominance of state-controlled Petrobras and foster a more competitive, open market for natural gas.

This liberalization has paved the way for private players like New Fortress Energy to invest heavily in critical infrastructure. NFE is not alone in this pursuit, with several new LNG terminals either operational or in development along Brazil’s coast. NFE itself operates another major LNG-to-power complex in Barcarena, in the northern state of Pará, underscoring its nationwide ambitions.

While LNG offers a path to enhanced energy security and a cleaner alternative to coal and oil, its expansion exists in tension with the global push toward renewable energy. In Santa Catarina, for instance, the state is also advancing its “Energia Boa Program” to accelerate the development of 21 new hydroelectric plants. The success of the TGS terminal and others like it will depend on their ability to provide a cost-effective and reliable power source that can compete with both legacy systems and emerging green technologies. The commercialization of TGS represents a major bet that flexible natural gas will remain an indispensable component of Brazil's energy mix for decades to come.