New Fortress Energy Inc. (NFE) operates as a global energy infrastructure company.
The company owns and operates natural gas and liquefied natural gas (‘LNG’) infrastructure, and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets; additionally, it has expanded its focus to building the company’s modular LNG manufacturing business.
Segments
The company operates through Terminals and Infrastructure and Ships.
Terminals and Infrastruc...
New Fortress Energy Inc. (NFE) operates as a global energy infrastructure company.
The company owns and operates natural gas and liquefied natural gas (‘LNG’) infrastructure, and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets; additionally, it has expanded its focus to building the company’s modular LNG manufacturing business.
Segments
The company operates through Terminals and Infrastructure and Ships.
Terminals and Infrastructure segment includes the entire production and delivery chain from natural gas procurement and liquefaction to logistics, shipping, facilities and conversion or development of natural gas-fired power generation. The company sources LNG from long-term supply agreements with third-party suppliers. The company’s first floating liquefaction unit, which it refers to as ‘Fast LNG’ or ‘FLNG’, began producing LNG in July 2024, and, once fully commissioned. The Terminals and Infrastructure segment includes all terminal operations in Jamaica, Puerto Rico, Mexico and Brazil, as well as vessels utilized in its terminal or logistics operations. The company centrally manages its LNG supply, and the deployment of its vessels utilized in its terminal or logistics operations, which allows it to optimally manages its LNG supply and fleet.
Ships segment includes certain vessels which are chartered under long-term arrangements to third parties and are part of the Energos Formation Transaction.
The company delivers targeted energy solutions by employing an integrated LNG supply and delivery model:
LNG and Natural Gas Supply and Liquefaction: The company supplies LNG and natural gas to its own power plants and to its customers. The company typically supplies LNG and natural gas regasified from LNG to its customers by entering long-term supply contracts, which are generally based on an index such as Henry Hub plus a fixed fee component. The company acquires its LNG from third party suppliers in open market purchases and long-term supply agreements. The company’s first floating liquefaction unit, which it refers to as ‘Fast LNG’ or ‘FLNG’, began producing LNG in July 2024.
Shipping: The company leases, owns or operates a fleet of seven regasification units (‘FSRUs’) and 12 liquefied natural gas carriers (‘LNGCs’) and floating storage units (‘FSUs’). Ten vessels are owned by Energos Infrastructure (‘Energos’). The company also charters vessels to and from third parties as well as from Energos.
Facilities: Through the company’s network of and planned downstream facilities and logistics assets, it is strategically positioned to deliver gas and power solutions to the company’s customers seeking either to transition from environmentally dirtier distillate fuels such as automotive diesel oil (‘ADO’) and heavy fuel oil (‘HFO’) or to purchase natural gas to meet their fuel needs.
Business Model
As an integrated gas-to-power energy infrastructure company, the company’s business model spans the entire production and delivery chain from natural gas procurement and liquefaction to shipping, logistics, facilities and conversion or development of natural gas-fired power generation. In executing the company’s business model, it has the capability to build or arrange any necessary infrastructure the company without reliance on multilateral financing sources or traditional project finance structures, so that the company maintains its strategic flexibility and optimize its portfolio. In addition, the company is developing facilities in Brazil, Nicaragua, Ireland and other locations
Facilities
The company looks to build facilities in locations where the need for natural gas is significant. The company designs and constructs natural gas and power facilities to meet the supply and demand specifications of its and potential future customers in an applicable region. In these markets, the company first seeks to identify and establish ‘beachhead’ target markets for the sale of LNG, natural gas or natural gas-fired power, and it then seeks to supply natural gas or power under long-term downstream contracts.
The company’s facilities position it to acquire and supply LNG to customers and natural gas-fired power in a number of attractive markets around the world. Downstream, the company has 14 facilities that are either operational or under active development. The company has five operational LNG terminal facilities and three under active development, as well as two operational power plant facilities and four power plant facilities under active development, as described below. The company’s LNG facilities operating or under development are expected to be capable of receiving up to one million MMBtu from LNG per day depending upon the needs of its customers and potential demand in the region.
LNG and Power Facilities
Montego Bay, Jamaica: The company’s Montego Bay Facility commenced commercial operations in October 2016. The Montego Bay Facility is capable of processing up to 60,000 MMBtu from LNG per day and features approximately 7,000 cubic meters of onsite storage. It supplies natural gas to the 145MW power plant (the ‘Bogue Power Plant’) operated by Jamaica Public Service Company Limited (‘JPS’) pursuant to a long-term contract for natural gas equivalent to approximately 25,000 MMBtu from LNG per day. The Montego Bay Facility also supplies numerous on-island industrial users with natural gas or LNG pursuant to offtake contracts of various durations. The company has total aggregate contracted volumes of approximately 29,000 MMBtu from LNG per day at its Montego Bay Facility with a weighted average remaining contract length of 15 years as of December 31, 2024. The company has the ability to service other potential customers with the excess capacity of the Montego Bay Facility, and it is seeking to enter into long-term contracts with new customers for such purposes.
Old Harbour, Jamaica: The company’s Old Harbour Facility commenced commercial operations in June 2019. The Old Harbour Facility is an offshore facility with storage and regasification equipment provided via FSRU. The offshore design eliminates the need for onshore infrastructure and storage tanks. It is capable of processing up to 750,000 MMBtu from LNG per day. The Old Harbour Facility is supplying gas to a 190MW gas-fired power plant (the ‘Old Harbour Power Plant’) owned and operated by South Jamaica Power Company Limited (‘SJPC’) pursuant to a long-term contract for natural gas equivalent to approximately 30,000 MMBtu from LNG per day, and back-up ADO, for 20 years.
The Old Harbour Facility is also supplying gas to the company’s 100MW CHP Plant, which it constructed, and which commenced commercial operations in March 2020. The CHP Plant is fueled by natural gas, with the ability to run on ADO as a backup fuel source. The company has executed a suite of agreements in connection with the CHP Plant, including a 20-year agreement to supply steam to an alumina refinery joint venture between affiliates of Century Aluminum Company, and the Government of Jamaica, and it has a 20-year agreement to supply electricity to JPS.
The company has total aggregate contracted volumes of approximately 58,000 MMBtu from LNG per day at its Old Harbour Facility with a weighted average contract length of 15 years as of December 31, 2024. The company has the ability to service other potential customers with the excess capacity of the Old Harbour Facility, and it is seeking to enter into long-term contracts with new customers for such purposes.
San Juan, Puerto Rico: The company’s San Juan Facility became fully operational in July 2020. It is designed as a landed micro-fuel handling facility located in the Port of San Juan, Puerto Rico. The San Juan Facility has multiple truck loading bays to provide LNG to on-island industrial users. The San Juan Facility is near the Puerto Rico Electric Power Authority (‘PREPA’) San Juan Power Plant and serves as the company supplies hub for the PREPA San Juan Power Plant and other industrial end-user customers in Puerto Rico.
In 2023, the company entered into agreements for the installation and operation of approximately 350MW of power to be generated at the Palo Seco Power Plant and San Juan Power Plant in Puerto Rico as well as the supply of natural gas and ADO. The company’s customer was contracted by the U.S. Army Corps of Engineers to support the island’s grid stabilization project with additional power capacity to enable maintenance and repair work on Puerto Rico’s power system and grid. The company’s commissioned 350MW of duel-fuel power generation using its gas supply in less than 180 days.
In March 2024, the company’s contract to provide emergency power services to support the grid stabilization project was terminated, and it completed a series of transactions that included the sale of turbines and related equipment deployed to support the grid stabilization project to PREPA. The company was also awarded a new gas sale agreement with PREPA to supply up to 80 TBtu annually to PREPA's gas-fired power plants, including to the turbines that were sold to PREPA. The contract initially has a one-year term that is renewable annually for three additional annual periods.
In the first quarter of 2023, the company’s wholly owned subsidiary, Genera PR LLC (‘Genera’), was awarded a 10-year contract for the operation and maintenance of PREPA’s thermal generation assets, improving reliability of power generation in Puerto Rico.
La Paz, Baja California Sur, Mexico: The company’s La Paz Facility commenced operations in the fourth quarter of 2021. It is an LNG receiving facility located at the Port of Pichilingue in Baja California Sur, Mexico, receiving LNG via ISO containers on an offshore supply vehicle from a nearby vessel. Beginning in 2021, it has entered into a gas sales agreements with CFEnergia (‘CFE’), a subsidiary of Federal Electricity Commission (Comisión Federal de Electricidad), Mexico’s power utility, for the supply of natural gas to power plants located at Punta Prieta and Coromuel in the State of Baja California Sur (‘CFE Plants’), the company continues to expand and extend its supply of natural gas to multiple CFE power generation facilities in Baja California Sur, and in the third quarter of 2024, the company executed a 10-year gas sales agreement to supply natural gas to additional CFE facilities on take-or-pay basis.
The La Paz Facility also supplies the company’s gas-fired power units located adjacent to the La Paz Facility (the ‘La Paz Power Plant’) and has a maximum capacity of up to 135MW of power. The company placed the La Paz Power Plant into service in the third quarter of 2023.
Santa Catarina, Brazil: The company placed its Santa Catarina Facility in service in the fourth quarter of 2024. The Santa Catarina Facility is located on the southern coast of Brazil and consists of an FSRU with a processing capacity of approximately 500,000 MMBtu from LNG per day and LNG storage capacity of up to 138,000 cubic meters. The company has developed and constructed a 33-kilometer, 20-inch pipeline that connects the Santa Catarina Facility to the existing inland Transportadora Brasileira Gasoduto Bolivia-Brasil S.A. (‘TBG’) pipeline via an interconnection point in the municipality of Garuva. The Santa Catarina Facility and associated pipeline are expected to have a total addressable market of 15 million cubic meters per day of natural gas.
In August 2024, the company acquired 100% of the outstanding equity interest of Usina Termeletrica de Lins S.A. (‘Lins’), which owns key rights and permits to develop a natural gas-fired power plant for up to 2.05GW located in the State of Sao Paulo, within the city limits of Lins, Brazil.
Barcarena, Brazil: The company’s LNG receiving facility located in the State of Pará, Brazil (the ‘Barcarena Facility’ and, together with the Santa Catarina Facility, the ‘Brazil Facilities’) consists of an FSRU and associated infrastructure, including mooring and offshore and onshore pipelines. The Barcarena Facility is capable of delivering almost 600,000 MMBtu from LNG per day and storing up to 160,000 cubic meters of LNG. The company has entered into a 15-year gas supply agreement with a subsidiary of Norsk Hydro ASA for the supply of natural gas to the Alunorte Alumina Refinery in Pará, Brazil, through its Barcarena Facility. The company has substantially completed its Barcarena Facility and are in process of final commissioning.
The Barcarena Facility will also supply the company’s new 630MW combined cycle natural gas-fired power plant to be located in Pará, Brazil (the ‘Barcarena Power Plant’). The power plant is fully contracted under multiple 25-year power purchase agreements to supply electricity to the national electricity grid. Construction of the Barcarena Power Plant was greater than 88% complete as of December 31, 2024.
Puerto Sandino, Nicaragua: The company is developing an offshore liquefied natural gas receiving, transloading and regasification facility off the coast of Puerto Sandino, Nicaragua (the ‘Puerto Sandino Facility’). The Puerto Sandino Facility is expected to supply gas via a pipeline to the company’s new approximately 300MW natural gas-fired power plant in Puerto Sandino, Nicaragua (the ‘Nicaragua Power Plant’) that it will own and operate. The company has entered into a 25-year power purchase agreement with Nicaragua’s electricity distribution companies. Construction of the terminal and power plant is substantially complete; however, the company will determine timing of final commissioning and commencement under its PPA based on the most optimal use of the company’s LNG supply chain. The company is evaluating solutions to optimize power generation and delivery to other markets, connected to its power plant through a regional transmission line.
Shannon, Ireland: The company intends to develop and operate an LNG facility (the ‘Ireland Facility’ and, together with the Jamaica Facilities, the San Juan Facility, the Brazil Facilities, the La Paz Facility and the Puerto Sandino Facility, its ‘LNG Facilities’) and a power plant on the Shannon Estuary, near Tarbert, Ireland (the ‘Ireland Power Plant’ and, together with the CHP Plant, La Paz Power Plant, Nicaragua Power Plant, Barcarena Power Plant and PortoCem Power Plant, the ‘Power Plants,’ and together with the LNG Facilities, the ‘Facilities’). In the third quarter of 2023, An Bord Pleanála, Ireland's planning commission, denied the company’s application for the development of an LNG terminal and power plant. The company challenged this decision, and in September 2024, the High Court of Ireland ruled that the ABP did not have appropriate grounds for the denial of its permit. The ABP has been directed to reconsider the company’s permit application in accordance with Irish law.
ZeroParks: In 2020, the company formed its Zero division to develop and operate facilities that produce clean hydrogen in an environmentally sustainable manner, and to invest in emerging technologies that enable the production of clean hydrogen to be more efficient and scalable. The company’s business plan is to build a portfolio of clean hydrogen production sites, each referred to as a ZeroPark, in key regions throughout the United States, utilizing the most efficient and reliable electrolyzer technologies.
The company’s first clean hydrogen project, known as ZeroPark I, is located in Beaumont, Texas. The ZeroPark I facility is sited within a 10-mile radius of the two largest refineries in the western hemisphere and numerous petrochemical manufacturers, many of which require significant amounts of hydrogen for their businesses. ZeroPark I, as planned, could use up to 200 MW of power, constructed in two distinct phases, each using 100 MW of electrolysis technology. In total, ZeroPark I is expected to produce up to 86,000 kg of clean hydrogen per day, or approximately 31,000 TPA. The company has commenced design, engineering and permitting for ZeroPark I. Additionally, the company has secured a binding offtake commitment for the clean hydrogen produced at ZeroPark I.
Klondike: In July 2024, the company launched Klondike, a power and data center development business dedicated to working with hyperscale customers to build and operate data centers. This venture comes in response to a significant need for turnkey digital infrastructure to support the next stage of explosive growth in artificial intelligence.
Disposition
In March 2024, the company closed the acquisition of PortoCem Geração de Energia S.A. (‘PortoCem’), a wholly owned subsidiary of Ceiba Fundo de Investimento em Participações Multiestrategia- Investimento no Exterior (‘Ceiba Energy’) in exchange for newly issued 4.8% NFE redeemable Series A Convertible Preferred Stock. PortoCem is the owner of a 15-year 1.6GW capacity reserve contract in Brazil. The company has transferred the 1.6 GW capacity reserve contract to a site owned by NFE that is adjacent to the Barcarena Facility, where NFE is building the 1.6 GW simple cycle, natural gas-fired power plant (the ‘PortoCem Power Plant’) to supply the capacity reserve contract using gas from the Barcarena Facility.
LNG Supply
NFE provides reliable, affordable and clean energy supplies to customers around the world that it plans to satisfy through the following sources: the company’s contractual supply commitments; the company owns FLNG production; and additional LNG supply contracts expected to commence in 2027. The company’s first FLNG facility began to produce LNG in July 2024. When expected production from FLNG is combined with the company’s commitments to purchase and receive physical delivery of LNG volumes, it expects to have sufficient supply for 100% of its committed volumes for each of the company’s downstream terminals inclusive of its Montego Bay Facility, Old Harbour Facility, San Juan Facility, La Paz Facility, Barcarena Facility and Santa Catarina Facility. Additionally, the company has binding contracts for LNG volumes from two separate U.S. LNG facilities, each with a 20-year term, which are expected to commence in 2027 and 2029.
Liquefaction Assets
The company is developing multiple modular liquefaction facilities to provide a source of supply of LNG to customers around the world. The company has designed and are constructing liquefaction facilities for its growing customer base that the company believes both faster and more economical to construct than many traditional liquefaction solutions. The company’s first ‘Fast LNG,’ or ‘FLNG,’ design pairs advancements in modular, midsize liquefaction technology with jack up rigs, semi-submersible rigs or similar marine floating infrastructure to enable a faster deployment schedule than other greenfield alternatives.
The company’s first Fast LNG unit has been deployed off the coast of Altamira, Tamaulipas, Mexico. The 1.4 million ton per annum (‘MTPA’) FLNG unit will utilize CFE’s firm pipeline transportation capacity on the Sur de Texas-Tuxpan Pipeline to receive feedgas volumes. The company’s first FLNG unit has been installed and connected to the gas pipeline at Altamira, and it placed the asset into service for accounting purposes in the fourth quarter of 2024. While the asset is in service from an accounting perspective, the company continues to finalize commissioning.
Shipping Assets
The company’s shipping assets include FSRUs, FSUs and LNGCs, which are either leased to customers under long-term or spot arrangements or commercially operated by the company.
In August 2022, the company completed a transaction (the ‘Energos Formation Transaction’) with an affiliate of Apollo Global Management, Inc., pursuant to which it transferred ownership of eleven vessels to Energos in exchange and a 20% equity interest in Energos.
Customers
The company continues to have significant concentrations in revenue. Revenue from three customers constituted 48% of total revenue in 2024.
The company has several contracts with government-affiliated entities in the countries in which it operates. In Jamaica, the company has gas sales agreements with Jamaica Public Service Company Limited (JPS) and South Jamaica Power Company Limited (SJPC). In Puerto Rico, the company has a fuel sale and purchase agreement with the Puerto Rico Electric Power Authority (PREPA), and Genera operates and maintains PREPA's thermal generation assets. In Mexico, the company has entered into a gas sales agreement with CFEnergia (CFE).
Government Regulation
The company’s operations in Jamaica are governed by various environmental laws and regulations. These laws and regulations are largely implemented through the National Environment and Planning Agency and cover discharges of pollutants, regulation of air emissions, discharges and treatment of wastewater, storage of fuels, and responses to industrial emergencies involving hazardous materials.
The operation of the facilities will be regulated via additional licenses and consents including from the Environmental Protection Agency (EPA); the Commission for Regulation of Utilities (CRU); the Health and Safety Authority (HSA); and the Local Planning Authority (Kerry Co. Council (KCC)). Additionally, the Shannon Foynes Port Company (SFPC) has statutory jurisdiction over marine activities. The LNG Terminal and Power Plant will also have to operate within the provisions of a number of codes, such as the EirGrid Transmission Network Grid Code, Single Electricity Market Trading and Settlement Code and GNI Code of Operations. The company is in the process of applying for all these necessary permits, licenses and consents to build and complete the Ireland Facility.
As part of its operations, the company’s San Juan Facility is required to comply with Clean Water Act requirements for stormwater and Clean Air Act requirements for facility emission sources. These laws and their related regulations require permits for the operation of the facilities and the implementation of mitigation measures to address environmental impacts of facility operations. Additionally, the company’s operations in Puerto Rico are subject to regulation by the Department of Transportation and Public Works (‘DTOP’).
The International Maritime Organization (‘IMO’) is the United Nations agency that provides international regulations governing shipping and international maritime trade. The requirements contained in the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the ‘ISM Code’) promulgated by the IMO govern the shipping of the company’s LNG cargos and the operations of any vessels it uses in its operations.
The company also complies with trade and economic sanctions laws, including the U.S. Commerce Department’s Export Administration Regulations and economic and trade sanctions regulations maintained by the U.S. Treasury Department’s Office of Foreign Assets Control.
The company is also subject to anti-corruption laws and regulations, including the U.S. Foreign Corrupt Practices Act (‘FCPA’), the U.K. Bribery Act and local anti-bribery laws, which generally prohibit companies and their intermediaries from making improper payments to foreign officials for the purpose of obtaining or keeping business and/or other benefits.
History
New Fortress Energy Inc. was founded in 1998. The company was incorporated in 2018.
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