US-listed New Fortress Energy (NFE) and its partners have agreed to sell the Porto de Sergipe Power Plant in Brazil, which is served by a floating storage and regasification unit for almost $1.3bn.

The company said that together with its project partner Ebrasil Energia, it has entered into a definitive share purchase agreement under which Brazilian power company Eneva will acquire 100% interest in the project of BRL 6.1bn ($1.29bn).

Under the transaction, Eneva will acquire both the equity interests in the power plant and the company, which owns 1.7GW of neighbouring expansion rights to the facility.

New Fortress chairman and chief executive Wes Edens said: “NFE will continue to operate the Golar Nanook, a floating storage and regasification unit that remains chartered to CELSE for the next 20 years.”

The FSRU is owned by New Fortress and managed by Cool Company.

The US company said the transaction is projected to generate proceeds to the organisation of about $550m after the paydown of certain debt and other liabilities and net of transaction expenses.

New Fortress, which is developing a series of floating LNG (FLNG) production units and import terminals, had previously flagged up the Sergipe plant as a potential asset sales candidate.

The huge power plant project was originally developed by what was then joint venture Golar Power. This later became Hygo Energy Transition and was sold to New Fortress.

Porto de Sergipe 1 was the first integrated LNG-to-power project in Brazil and the largest and most efficient thermal power station in Latin America when it started up in 2020.

Edens said New Fortress looks forward to maintaining a long-term relationship with Eneva and the power plant.

“Eneva is one of Brazil’s leading power companies and a highly capable long-term owner and operator of this critical power asset for north-east Brazil,” he said.

Eneva chief executive Pedro Zinner said the plant will play “a critical role” in Eneva’s strategy going forward.

He said it will allow the company to develop new business opportunities in Brazil with access to gas as a “cornerstone” for these.

“This can be the beginning of a very fruitful and long-lasting relationship between two companies, which have complementary roles in the gas value chain,” Zinner said.

New Fortress said the transaction is expected to close in the second half of 2022.