Power infrastructure firm New Fortress Energy has signed two long-term liquefied natural gas supply deals to support its gas and electricity business in several countries.
The LNG deals will supply New Fortress with LNG to convert into natural gas and electric power for units in Puerto Rico, Mexico and Nicaragua. With these purchases and the previous purchases of LNG for the Company’s Jamaican operations, NFE has purchased LNG volumes equal to about 80 percent of its expected needs across its current portfolio of terminals and assets.
“As a company, our goal is to match our LNG purchases as much as possible with our customer volumes, thus reducing our exposure to changes in the market price for LNG across our portfolio,” said New Fortress Chairman and CEO Wes Edens. “Approximately 70 percent of our gas contracts with our customers are indexed to Henry Hub and with the contracts signed today, we will match most of those volumes with these commitments that are also indexed to Henry Hub.”
Last year, New Fortress Energy LLC announced it has signed a memorandum of understanding (MOU) with the Angolan Ministry of Mineral Resources and Petroleum, Ministry of Energy and Water and the Ministry of Finance for a LNG terminal. The facility would supply natural gas to the nation for power generation.
The U.S. is building LNG terminals along its Gulf Coast to export natural gas from lucrative shale plays to markets across the world. Recent figures from the Energy Information Administration shows that domestic U.S. working gas storage is near 1.9 trillion cubic feet last month and has averaged as high as 3 trillion cubic feet in recent periods.
New Fortress Energy, founded five years ago by Edens, has offices in New York, Florida and Mexico.