U.S.-based energy company New Fortress Energy has secured a long-term lease and capacity agreement for its Terminal de Gás Sul’s (TGS) Liquefied Natural Gas (LNG) import facility in Santa Catarina, Brazil, a move aimed at bringing the terminal into commercial operation and supporting power generation in the region.
According to a report by World Oil dated April 1, the agreement is expected to begin in August 2026 and could generate about US$50 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2027.
“This agreement delivers immediate, contracted cash flow and highlights the strategic value of our infrastructure platform in Brazil. TGS is now positioned as a stable, cash-generating asset with meaningful long-term upside,” the report quoted Leandro Cunha, Managing Director of New Fortress Energy Brazil, as saying.
The report noted that the terminal is designed to allow flexible delivery of natural gas to support dispatchable power generation. It is also expected to supply gas to the company’s UTE Lins 2 power project, a greenfield development awarded in a recent capacity auction and scheduled to start operations in 2031.
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The development comes as Brazil’s LNG market continues to expand, with import terminals playing a growing role in balancing energy demand and supporting gas-fired power generation.
