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According to NFE, the Fast LNG (FLNG) project is in the final phase of commissioning and is producing above nameplate capacity of 1.4 mtpa.
NFE said in its investor update on Wednesday that its FLNG 1 has been steadily producing at 1.67 mtpa (440 cbm per hour) or 120 percent of its nameplate capacity.
The company’s proprietary Fast LNG design pairs the latest advancements in modular liquefaction technology with jack up rigs or similar offshore infrastructure to enable a faster deployment schedule than traditional liquefaction facilities.
NFE sent its liquefaction rig Pioneer II on September 26, 2023 to 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 FLNG project consists of three rigs, Pioneer I, II, and III.
Besides the three rigs, the 160,000-cbm Penguin FSU serves the project as a floating storage unit.
Shipments
In August last year, NFE loaded the first Altamira LNG cargo and this partial shipment was delivered to NFE’s La Paz, Mexico terminal.
The company shipped the first full LNG cargo from its first FLNG project off Mexico’s Altamira to Europe.
This shipment onboard the 138,000-cbm Energos Princess was delivered to the Dutch Gate LNG terminal in the port of Rotterdam.
Also, the third shipment was delivered to NFE’s operation in Puerto Rico, where NFE’s San Juan LNG import terminal is located and supplies a power plant and other customers.
NFE said its FLNG 1 is the only liquefier in the Gulf Coast that is permitted to export LNG to Puerto Rico.
According to the company, the current downstream committed volumes in Puerto Rico are at about 75 TBtu with potential to grow to 200 TBtu with short-term conversion opportunities and long-term newbuild opportunities.
In addition to this project, NFE closed in July last year its previously announced $700 million loan for its second FLNG unit which it aims to install onshore in Altamira.
NFE’s FLNG2 is being built using modular design at the Kiewit shipyard.
The company said in the update it expects onshore construction to start in the third quarter of this year, with modules to ship from the yard in the second quarter of 2026.
Mechanical completion is expected in the fourth quarter of 2026, and commissioning and start-up in the first half of 2027.
New investments
NFE is seeking strategic partners for one or more of its core businesses to boost the company’s liquidity.
The company has begun work to identify strategic partners for one or more of its primary businesses, including projects in Brazil, Puerto Rico, Jamaica, Mexico, Nicaragua, FLNG 1, and Klondike.
NFE’s boss Wes Edens said during the third-quarter earnings call in November that NFE “believes that some of the parts of our businesses and units are worth significantly more than the current debt and equity levels of the company.”
“And so our focus is to close that gap by focusing on individual assets that can be capitalized, bringing partners, etc., to realize that value,” he said.
NFE said in the update it is seeking new investments to deleverage about $5.8 billion in corporate debt.
The company is exploring several alternatives, including $2 billion to $3 billion in asset sales.
NFE began the process with its Jamaica business and received first-round bids in December, according to the update.