New Fortress secures long-term lease for Brazil FSRU LNG terminal

(WO) — New Fortress Energy’s Brazil platform has signed a long-term lease and capacity agreement for its Terminal de Gás Sul (TGS) LNG import facility in Santa Catarina, marking a key step in bringing the asset into commercial operation.

The agreement, which is expected to begin in August 2026, is projected to generate approximately $50 million in annual EBITDA by 2027.

TGS provides access to imported LNG for power generation in southern Brazil, where domestic gas supply options are limited. The terminal is designed to offer flexible gas delivery to support dispatchable 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. “TGS is now positioned as a stable, cash-generating asset with meaningful long-term upside.”

Beyond near-term revenue, the terminal is expected to support New Fortress Energy’s longer-term growth in Brazil. TGS will supply natural gas to the company’s UTE Lins 2 power project, a greenfield development awarded in a recent capacity auction and scheduled to begin operations in 2031.

The combination of contracted cash flow and future demand tied to gas-fired power generation positions TGS as a core component of the company’s LNG-to-power strategy in Brazil, with additional potential to supply industrial users and other power producers.