Under agreements finalised with Comisión Federal de Electricidad (CFE), New Fortress Energy (NFE) will create a floating LNG (FLNG) hub off the coast of Altamira, Tamaulipas, Mexico
For the FLNG hub, CFE will supply feed gas to multiple NFE FLNG units using CFE’s existing available pipeline capacity.
NASDAQ-listed NFE said the agreement would be marked by a ceremony on 3 November in Mexico by Mexican President Andrés Manuel López Obrador, and CFE chief executive Manuel Bartlett.
These agreements, first announced on5 July also involve expanding and extending NFE’s supply of natural gas to multiple CFE power generation facilities inBaja California Sur, and selling NFE’s 135-MW La Paz power plant to CFE.
“We are pleased to complete these agreements and expand our strategic alliance with CFE, which we expect to result in the delivery of our first FLNG unit by mid-2023 and enable the construction of a new LNG hub off the coast of Altamira,” saidNFE chairman and chief executive Wes Edens.
In July 2021, NFE commenced commercial operations of an LNG regasification terminal in the port of Pichilingue, La Paz, Baja California Sur. The terminal, which features NFE’s proprietary ISO Flex system, will supply natural gas to CFE’s generation facilities in the otherwise resource-stranded region, which include CTG La Paz and CTG Baja California Sur.
NFE’s ISO Flex System involves moving LNG from the NFE carrier vessel directly into ISO storage containers on an offshore support vessel (OSV). Back at the terminal, the ISO containers are offloaded from the OSV onto a truck chassis using a port crane, then trucked to customer sites.
As part of the agreements, CFE and NFE will extend the term and increase the volume of NFE’s gas supply agreement to CFE’s power generation facilities in the region. Additionally, NFE will sell its own 135-MW Central Turbogás Amaunet power plant inLa Pazto CFE.
The addition of this power plant to CFE’s generation fleet is expected to enhance system reliability, reduce power costs, and complement steps CFE is taking to expand the use of renewable energy resources and lower emissions in the region by nearly half a million tons of CO2 per year.
NFE and CFE are collaborating on the creation of a new FLNG hub off the coast ofAltamira, Tamaulipas.
Pursuant to the now finalised agreements, NFE will deploy multiple FLNG units of 1.4 MTPA each that utilize CFE’s existing firm pipeline transportation capacity on TC Energy’s Sur de Texas-Tuxpan Pipeline to deliver feed gas volumes to NFE.
NFE’s first FLNG unit, which is under construction at theKiewit Offshore Servicesshipyard nearCorpus Christi, Texas, is currently expected to achieve mechanical completion inMarch 2023, after which it will be delivered toAltamirafor commencement of operations.
As part of the agreements, CFE would share in the production and marketing of a portion of the LNG volumes from the newAltamiraoffshore FLNG hub.
