For years, the countries of Brazil, especially those from the central and southern regions, have depended on hydropower. Hydropower has been distributed by state-owned oil and gas companies that have enjoyed a service monopoly. However, overdependence on hydropower has of late been experiencing challenges. This is because Brazil has been experiencing drought. The latest one is the worst yet in over a century. The region has been forced to reactivate thermal power, which is quite costly to the people of Brazil to combat the problem. A New York-based company, New Fortress Energy, of Wes Edens saw the depravity in this sector and decided to introduce liquefied natural gas as an alternative to hydropower in the area. The company opted to introduce this alternative energy since almost 95 percent of the countries of Brazil depended on hydropower. The company has made its footprint in the Brazilian energy market and is slowly taking it over from conventional monopolized companies.
To establish a strong presence in the Brazilian energy market, the company had to make some significant costly moves but eventually benefited. New Fortress Company invested $2.18 billion in the acquisition of Hygo Energy Transition. The company’s addition gave New Fortress Energy access to Santa Catarina and the Sergipe terminals that are to start functioning in 2022. Other than the acquisition, New Fortress Energy also parted with $251 million to merge with Golar LNG, one of Brazil’s most significant players in the energy industries. However, Wes Edens predicts that this expensive venture would pay off soon.
Wes Edens has established four terminals to produce the liquefied natural gas, which will begin functioning by 2022. Besides, the company boasts of its flexibility, implying that it is one of the reasons the people of Brazil most prefer it at the moment. The company has achieved flexibility by eliminating unnecessary costs from its services