During the after-market session Friday, there has been notable activity in New Fortress Energy Inc. (NASDAQ: NFE), with an uptick of 4.10% to $29.21 following a relatively steady regular-session closure at $28.06. This surge correlates with significant news regarding a major agreement, indicating a direct association between the agreement's announcement and the subsequent rise in NFE stock.
New Fortress Energy (NFE) has officially confirmed and executed an engineering, procurement, and construction contract (referred to as the "EPC Contract") with a consortium comprised of Mitsubishi Power Americas and Andrade Gutierrez (the "MHI/AG Consortium"). This contract pertains to the development of a 1.6 GW power plant planned for construction adjacent to the Barcarena LNG terminal.
Furthermore, New Fortress Energy has issued a comprehensive Notice to Proceed to the MHI/AG Consortium, authorizing the commencement of construction activities as outlined in the contract. The power plant's establishment aligns with the previously announced 15-year Capacity Reserve Contract, which NFE acquired from Denham Capital and CEIBA Energy, and subsequently closed in March 2024.
Under the terms of the fixed-price and date-specific EPC Contract, construction endeavors for the thermal power plant are already underway, with commercial operations anticipated to commence no later than August 2026. The power plant will operate under the 15-year Agreement established with the Brazilian Chamber of Electric Energy Commercialization.
In the first quarter of 2024, New Fortress Energy successfully concluded construction and commissioning activities for both the Barcarena and Santa Catarina "TGS" terminals. With the addition of the existing 630 MW power plant and a 25-year agreement, the Barcarena LNG terminal is poised to accommodate and supply LNG to over 2,200 MWs of power capacity owned by NFE.
Moreover, New Fortress Energy will supply natural gas to Norsk Hydro's Alunorte alumina refinery under a 15-year contract that commenced in Q1 2024. NFE has demonstrated agility and collaboration in initiating construction for its 1.6 GW power plant in Barcarena, in conjunction with partners Mitsubishi Power and Andrade Gutierrez.
New Fortress Energy anticipates the completion of this project within the next 24 months. This 1.6 GW power plant represents a landmark initiative for Brazil, facilitating an efficient transition in energy provision and ensuring the reliability of the national electrical grid.