US Customs and Border Protection has issued a ruling confirming that the transportation of LNG produced at New Fortress Energy’s FLNG facility located offshore Altamira, Mexico by non-US qualified vessels would not violate the Jones Act.
As a result of this ruling, NFE is now able to sell and deliver LNG produced at its FLNG facility located offshore Altamira, Mexico to US locations, including Puerto Rico, the US LNG firm said in a statement.
NFE noted that Puerto Rico is a “key downstream market” for the company.
“We are extremely pleased to receive this ruling for our FLNG facility since it not only supports one of the company’s largest projects but also supports the people of Puerto Rico,” Wes Edens, chairman and CEO of NFE, said in the statement.
NFE did not provide an update regarding its first FLNG project off Altamira and when it expects to launch it.
In its latest update in November 2023, NFE said it completed “sailaway, installation, and first gas for our first FLNG asset in offshore Altamira, Mexico.”
The company said in its third-quarter report it expected to achieve first LNG and to reach full commercial operation by the end of the fourth quarter.
Prior to that, the firm delayed the launch of the project and in an update on September 29 said that it planned to launch the FLNG project off Altamira in late October or early November.
NFE sent its liquefaction rig Pioneer II on September 26, 2023 to Mexico’s Altamira to start serving the FLNG project.
Prior to this, NFE’s utilities and accommodation rig, Pioneer III, arrived off Altamira, as well as the gas treatment rig.
The $1.3 billion FLNG project consists of three rigs, Pioneer I, II, and III.
Besides the three rigs, the 160,000-cbm Penguin FSU will serve the project as a floating storage unit.
According to its AIS data, the vessel was on Tuesday located off Altamira.