Why New Fortress Energy halted operations of a Brazil LNG terminal

New Fortress Energy (NFE) has halted operations of one of its liquefied natural gas regasification terminals in Brazil.

The decision was taken due to the uncertainty regarding the realization of the country's next backup capacity tender, which has not been rescheduled after the government canceled it. 

After going through scheduled maintenance, the floating, storage regasification unit (FSRU) Energos Winter, which operated at Santa Catarina state's Gás Sul Terminal (TGS), was transferred to Egypt under a five-year charter contract.  

"We reiterate our commitment to TGS and, as soon as a new auction is decided, the company will announce its updated plans for the project," New York-based NFE told BNamericas via its Brazil press office. 

Opened in 2024, TGS has the capacity to regasify 15Mm3/d -- the same as the other LNG terminal owned by the company in Brazil, Barcarena in Pará state. 

Initially scheduled for June 27, the backup capacity auction had 372 thermoelectric and hydroelectric projects totaling 74GW of installed capacity registered to participate. 

The cancellation came after a myriad of questions from sector agents and lawsuits filed against adjustments to the bidding rules made by the government.