New Fortress Energy secures 5-year FSRU deployment deal in Egypt

NEW YORK - New Fortress Energy Inc. (NASDAQ:NFE), a $1 billion market cap energy infrastructure company currently trading at undervalued levels according to InvestingPro analysis, has signed a 5-year agreement with Egyptian Natural Gas Holding Company (EGAS) to deploy the Energos Winter floating storage and regasification unit (FSRU) at EGAS’s LNG import terminal in Damietta, Egypt, according to a company press release.

The 138,250 m³ vessel will be NFE’s second FSRU stationed in Egypt, joining the Energos Eskimo as early as August 2025. The unit will provide regasification services at the Damietta terminal.

"This deal enhances NFE’s goals of providing reliable and cost-effective energy across the globe," said Chris Guinta, CFO of New Fortress Energy, in the statement.

Yasseen Mohamed, Executive Managing Director of EGAS, noted that the agreement will contribute "to the security of natural gas supply for the Arab Republic of Egypt over the next five years."

FSRUs are specialized vessels that can store liquefied natural gas and convert it back to gaseous form for distribution through pipelines, providing flexible import capacity for countries seeking to enhance their energy security.

New Fortress Energy owns and operates natural gas and LNG infrastructure globally, with assets including ships and logistics operations that deliver energy solutions to markets worldwide.

The company did not disclose the financial terms of the agreement in its press release.

In other recent news, New Fortress Energy reported a significant development by securing a 15-year contract to supply liquefied natural gas to multiple power plants in Puerto Rico, which promises a stable revenue stream. However, the company faced a setback when Puerto Rico’s financial oversight board rejected a proposed $20 billion gas deal, citing concerns over monopolistic arrangements and potential costs to ratepayers. In terms of financial performance, S&P Global Ratings downgraded New Fortress Energy to ’CCC’, highlighting refinancing risks and a reduced EBITDA estimate of $750 million, down from an earlier forecast. BTIG also downgraded the company from Buy to Neutral, pointing to debt structure concerns, despite expectations that liquidity issues will be addressed. Meanwhile, at the company’s annual meeting, shareholders elected three directors and approved Ernst & Young LLP as the independent auditor for the fiscal year. These developments illustrate the challenges and opportunities currently facing New Fortress Energy.

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