NFE expects to launch Altamira FLNG project in September

US LNG firm New Fortress Energy is expecting to launch its first FLNG project off Altamira in September this year.

NFE’s utilities and accommodation rig, Pioneer III, recently arrived in Mexico from the Kiewit Offshore Services shipyard in Ingleside, near Corpus Christi, Texas.

In early June, the US LNG firm received an export permit for its Altamira Fast LNG facility from Mexico’s Ministry of Energy (SENER).

Under the permit, NFE is authorized to export up to 7.8 million metric tons through April, 2028, providing ample capacity to support the operations of the 1.4 million tons per annum Fast LNG facility through the permitted period, it said.

Chris Guinta, NFE’s finance chief said during the company’s second-quarter earnings call that each of the rigs which will serve the company’s first FLNG project have achieved mechanical completion.

The $1.3 billion FLNG project consists of three rigs, including the liquefaction platform and also the gas treatment platform, and they are named Pioneer I, II, and III.

2
Image: New Fortress Energy

Pioneer I is the gas processing module and this unit is expected to be mobilized and installed around August 23, while the liquefaction module, Pioneer II, is expected to be mobilized and installed around August 28, according to Guinta.

He said that the Pioneer III rig has already been installed offshore Altamira.

First LNG cargo in October

Guinta also said that the 160,000-cbm Penguin FSU, which will serve the project as a floating storage unit, is on its way to Altamira.

Moreover, Guinta said that NFE is expecting to introduce first gas in September and sell the first LNG cargo in October this year.

NFE expects to launch Altamira FLNG project in September
Image: New Fortress Energy

NFE is currently working on up to five floating LNG production units using its “Fast LNG” liquefaction design that incorporates modular, midsize liquefaction technology with jack up rigs or similar offshore infrastructure.

Last year, NFE signed separate deals with CFE and Pemex aimed at installing LNG production units off Mexico.

Under the deal with CFE, the firm agreed to create a new FLNG hub off the coast of Altamira, Tamaulipas.

FLNG 2 and 3

Earlier this year, NFE also signed a letter of intent with CFE to install units 2 and 3 onshore at the existing Altamira terminal.

The LNG import terminal built in 2006 is currently underutilized and transforming it into an export facility follows the legacy of Sabine Pass nearly 10 years ago, the firm said.

According to NFE, the 1.4 mtpa units are each worth about $900 million.

Given that NFE has already completed all the engineering and design, Guinta said that NFE now believes that future modules “will be completed in around 18 months.”

“This will allow us to deploy FLNG 2 and 3 modules in the second half of next year,” he said.

Most Popular

Excelerate buys GasLog LNG carrier

US FSRU player Excelerate Energy has purchased a 2007-built steam liquefied natural gas (LNG) carrier from GasLog Partners, a part of Greek LNG shipping firm GasLog, according to brokers.

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.

More News Like This

Another FSRU arrives in Egypt

The 160,000-cbm FSRU Energos Eskimo has arrived in Egypt from Jordan, according to shipping data. The unit is one of four FSRUs that will serve a charter deal with Egypt's EGAS as the country seeks to meet its growing demand for natural gas.

Avenir LNG seals charter deal with Excelerate

UK-based small-scale firm Avenir LNG has secured a multi-year extension for its 7,500-cbm vessel Avenir Accolade with US FSRU player Excelerate Energy.

NFE gets non-compliance notice from Nasdaq

US LNG player New Fortress Energy said it had received an expected notice from Nasdaq on non-compliance with the latter’s listing rule for not submitting its quarterly report with the US SEC.

NFE working on two more FSRU charter deals

US LNG player New Fortress Energy is in advanced talks to charter two more floating and regasification units, according to its management.