The Portocem project has been one of the most technically and financially complex power developments in Latin America in recent years—and one that has redefined how large-scale LNG-to-power projects can be financed in Brazil.
The 1.6 gigawatt gas-fired thermoelectric plant was first tendered in 2021, with a target to begin operations by mid-2026. But the project quickly ran into trouble. “We inherited a real challenge because the original owner of the project in practice spent three years of construction time until they concluded that it would not have been possible to build it in the original location,” recalls Leandro Cunha, managing director at project sponsor New Fortress Energy (NFE) in Brazil.
Originally slated for Pecém in Ceará state, Portocem, which wins the award for Power Financing of the Year, was eventually relocated more than 1,500 kilometers north, to Barcarena in Pará. The move proved strategic. Barcarena is home to NFE’s existing LNG terminal and a 630 megawatt thermoelectric complex under construction, allowing the company to integrate facilities, fuel supply, and transmission infrastructure into a single, resilient hub.
To make that possible, NFE had to solve a financing puzzle. In early 2024, the company secured a bridge loan from five commercial banks to resume construction. But to refinance the debt and ensure the long-term viability of the project, NFE pursued a more ambitious structure. By November 2024, it closed R$4.5 billion (then US$736 million) in 16-year incentivized debentures, subscribed by development bank BNDES and asset manager Kinea.
“Our main challenge was to quickly structure the long-term financing so that we would be able to repay the bridge loan and resume construction,” Cunha says. “BNDES proved to be surprisingly fast in helping us to structure the deal. It was probably also easier to negotiate with two counterparties than it would have been with five commercial banks.”
The speed was critical. NFE reached financial close in just six months—remarkably fast given the deal’s scale and complexity. That pace reflected the parties’ alignment and the fact that BNDES had already financed NFE’s Barcarena complex. The transaction became the largest debenture issuance for an LNG-to-power project in Brazilian capital markets history and marked BNDES’s single biggest commitment to a thermoelectric power plant.
Beyond its size, the financing stood out for its structure and precedent-setting qualities. Legal counsel highlighted the deal as one of the most sophisticated cross-border project financings in Latin America, blending Brazilian, New York, and UK law into a coherent framework. Collateral packages included fiduciary transfers over equity, quotas, and receivables from NFE subsidiaries that own and operate integrated LNG and power assets. The innovative legal architecture ensured creditor protections across jurisdictions and provided a template for future mezzanine capital structures in emerging-market project finance.
Market participants also point to the cost advantages. By replacing the standard requirement of bank guarantees with a corporate guarantee from NFE, the structure reduced financing costs by more than 200 basis points compared with commercial bank proposals. It also lowered the project’s total capital needs by around R$1 billion, making the economics more resilient amid a volatile macroeconomic environment.
Portocem’s strategic significance cannot be overstated. With an installed capacity of 1,572 megawatts, it will be the largest peaking power plant in Brazil and one of the largest in Latin America. The project is designed to provide reliable electricity during peak demand and low hydrology years, strengthening Brazil’s ability to integrate intermittent renewable energy. Its location in Pará, historically underserved in terms of infrastructure, will also stimulate the local economy by creating up to 1,000 jobs during construction and 75 permanent roles in operation.
Cunha says NFE is already preparing to bid in Brazil’s upcoming thermoelectric tenders in early 2026, building on the success of Portocem. For now, the financing stands as a benchmark in the region: a large, legally intricate, and strategically vital deal that combined speed, innovation, and cross-border collaboration.
Power Financing of the Year
Portocem
$751m Limited-Recourse Project Financing: R$4.5bn 16-year incentivized debentures
Sponsor: New Fortress Energy
Issuer: Portocem Geração de Energia
Lead Arranger: BNDES
Lender: BNDES & Kinea Investimentos
Counsel to Sponsors: Mattos Filho; Tauil & Chequer
Counsel to Lenders: Machado Meyer; White & Case
Financial Advisor: Lakeshore Partners
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com