US LNG player New Fortress Energy has finalized its previously announced deals with Mexico’s Comision Federal de Electricidad (CFE), including for the creation of a new FLNG hub off the coast of Altamira, Tamaulipas.
NFE revealed in July this year two separate deals with Pemex and CFE aimed at installing floating LNG production units off Mexico.
Now the firm finalized the deals with CFE and aims to sign them at a ceremony planned for November 3 in Mexico City, NFE said in a statement on Friday.
Pichilingue LNG deal
NFE launched in July last year an LNG terminal in the port of Pichilingue in Mexico’s Baja California Sur state.
The terminal, which features NFE’s proprietary ISOFlex system, is optimally positioned to supply natural gas to CFE’s generation facilities in the otherwise resource-stranded region, which include CTG La Paz and CTG Baja California Sur, according to the firm.
As part of the finlaized agreements, CFE and NFE will extend the term and increase the volume of NFE’s gas supply agreement to CFE’s power generation facilities in the region.
Additionally, NFE would sell its own 135 MW Central Turbogas Amaunet power plant in La Paz to CFE, further enhancing NFE’s ability to internally fund strategic growth initiatives that service the company’s customers’ needs amid a structurally short global LNG market, it said.
Offshore LNG hub
Pursuant to the now finalized agreements, NFE would deploy multiple FLNG units of 1.4 mtpa each that utilize CFE’s existing firm pipeline transportation capacity on TC Energy’s Sur de Texas-Tuxpan Pipeline to deliver feedgas volumes to NFE, the firm said.
NFE’s first FLNG unit, which is under construction at the Kiewit Offshore Services shipyard near Corpus Christi, Texas, should achieve mechanical completion in March 2023, according to NFE.
NFE said it would deliver the new unit to Altamira for commencement of operations “soon thereafter”.
As part of the agreements, CFE would share in the production and marketing of a portion of the LNG volumes from the new Altamira offshore FLNG hub as well.
These transactions remain subject to customary terms and conditions and execution of the related agreements, the firm said.
Wes Edens-led NFE previously revealed plans to install up to eight floating liquefaction facilities in the US Gulf of Mexico using its “Fast LNG” liquefaction design that incorporates modular, midsize liquefaction technology with jack up rigs or similar offshore infrastructure.