December 7, 2022

New Fortress executes Altamria FLNG hub agreement

New Fortress Energy (NFE) Inc. has entered into agreements with Mexico’s Comisión Federal de Electricidad (CFE) to expand and extend NFE’s natural gas supply to several CFE power plants in Baja California Sur, sell the NFE’s 135 MW power plant in La Paz to CFE, and create a new floating LNG (FLNG) hub off Altamira, Tamaulipas, with CFE supplying the feed gas needed for several NFE FLNG units using the capacity existing CFE pipeline.

NFE expects to deliver the first of three 1.4 million ton/yr FLNG units by mid-2023. The modular approach to the development of the FLNG hub will allow it to be brought online gradually and expanded according to market demand. The gas will be supplied by TC Energy Corp’s 2.6 bcfd Sur de Texas-Tuxpan pipeline.

The first New Fortress FLNG unit for the project is being built at the Kiewit Offshore Services Ltd shipyard. near Corpus Christi, Texas, and NFE expects mechanical completion in March 2023. CFE will share the production and marketing of part of the LNG from the Altamira offshore hub.

In July 2021, NFE began commercial operations of its 1.3 bcfd LNG regasification terminal in the port of Pichilingue, La Paz, Baja California Sur, supplying natural gas to CFE’s production plants in the region. Under the new agreements, CFE and NFE will extend the term and increase the volume of NFE’s gas supply. NFE will also sell its 135Mw Central Turbogás Amaunet power plant, also in La Paz, to CFE.