New Fortress to supply LNG to Mexican power plants

Wes Edens-led New Fortress Energy said Monday it entered into a deal to supply LNG to a unit of Mexico’s state-run electric utility, the Federal Electricity Commission.

Under the deal, NFE would provide about 250,000-500,000 gallons of LNG (20,000-40,000 MMBtu) per day to CFEnergia, it said.

The Mexican firm would use LNG to fuel its CTG La Paz and CTG Baja California Sur power plants in Baja California Sur, according to NFE.

In addition, NFE said it would supply LNG via the company’s receiving and regasification terminal in the port of Pichilingue, Baja California.

The US firm added it expects to complete the facility and start supplying LNG in May.

To remind, NFE said last week it plans to raise $1.5 billion via a private offering in order to fund a part of its previously announced deal to buy two Golar units.

NFE has this year announced several developments as it looks to build up its LNG business.

Besides the $5 billion Golar deal, NFE recently also revealed a plan to build a floating liquefaction unit.

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