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NFE and Unigel to provide Natural Gas to Fertilizer Plants in Brazil

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On Wednesday, New Fortress Energy Inc. (NFE) announced it executed two Gas Supply Agreements (“GSA”) with subsidiaries of Unigel Participações (“Unigel”). Accordingly, these deals will support the supply of natural gas to the Unigel Agro-BA and Unigel Agro-SE fertilizer plants; specifically located in the Brazilian states of Bahia and Sergipe, respectively.

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Similarly, the agreements also include an option to supply Unigel’s chemicals facility in Candeias, state of Bahia, Brazil.

NFE and Unigel on the agreements

In fact, in total, NFE expects to supply Unigel with up to 41 Tbtu of natural gas annually (equivalent to approximately 1.4 million gallons of LNG per day) for a 5-year term beginning in Q1 2022.

In this regard, Wes Edens, Chairman, and CEO of NFE commented; “We are excited to become the strategic gas supply partner of Unigel, one of the premier industrial companies in Brazil. Thus, this partnership demonstrates the value our LNG import terminals will provide to customers in Brazil; particularly, as we bring affordable, reliable energy supply and support industry throughout Brazil.”

Moreover, Andrew Dete, Managing Director at NFE added; “Indeed, NFE is proud to partner with Unigel to support domestic fertilizer production in Northeast Brazil. Accordingly, these agreements are great examples of NFE’s mission to partner with leading industrial customers in Brazil; specifically, to provide reliable energy supply.”

About the potentialities for global LNG markets

Indeed, the supply of gas from NFE’s strategically located Suape and Sergipe LNG terminals in Brazil’s northeast will connect Unigel’s operations to the global LNG and natural gas markets. Particularly, this will significantly reduce pipeline transportation charges.

Accordingly, Roberto Noronha Santos, CEO of Unigel commented; “We believe that this 5-year term agreement with NFE will provide a more reliable, stable operation for our plants in the long run. Remarkably, this is key to improve our competitiveness and solidify our commercial presence in Brazil.”

Lastly, and it is worth noting, Unigel’s Fertilizer Plants are capable of producing over 3,000 tons per day of urea in total. Finally, Unigel and NFE said the transaction is subject to the receipt of certain regulatory approvals and other customary conditions.

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