Leading liquefied natural gas (LNG) infrastructure company New Fortress Energy (NFE) said it will complete the development of the first Fast LNG (FLNG) facility in Mexico in May 2023, which will be deployed offshore in Altamira. From July onward, the unit will be fully functional to produce LNG.

New Fortress is known for LNG export units to supply natural gas over a long distance. “We are less than 100 days away from our first FLNG setting sail to its home in Altamira, Mexico,” Christopher Guinta, CFO, New Fortress Energy said. To source its natural gas, the company is utilizing CFE’s existing, underutilized pipeline capacity.

As part of a growing strategic alliance pushed by President López Obrador, the company signed an accord with CFE in October 2022. The agreement has three important clauses: expanding and extending NFE’s supply of natural gas to multiple CFE power plants in Baja California Sur,  selling NFE’s 135MW La Paz power plant to CFE and creating a new FLNG hub off the coast of Altamira. The company sold its La Paz facility for US$180 million.

Moreover, the company reported that the development of five fast LNG units is underway. Two of these will be deployed at Altamira, one at the offshore Lakach gas field and two offshore in Louisiana. Each unit will be capable of producing 1.4MTPA/y of LNG.

Guinta reported the LNG facility at Lakach is estimated to complete construction in April 2024. Lakach LNG will be Mexico’s third liquefaction plant.

The Lakach deepwater natural gas project was once discarded by the state company PEMEX, however, the company during the first public session in 2022, chaired by the newly appointed head, approved it for the Ne Fortress for US$1.79 billion.

In early February 2023, New Fortress’ stock dropped by 15% to an 11-month low of US$32.82. “A negative initial reaction is not totally surprising given the FLNG delays and 4Q EBITDA miss,” said analysts at investment banking firm Jeffries.