NFE, CFE confirm Mexico gas, FLNG arrangements

Oct. 28, 2022

New Fortress Energy (NFE) has finalized various gas agreements with Mexico’s Comisión Federal de Electricidad (CFE).

Offshore staff

NEW YORK — New Fortress Energy (NFE) has finalized various gas agreements with Mexico’s Comisión Federal de Electricidad (CFE).

These were first announced in July and should be formally executed at a ceremony next week in Mexico City.

They involve

Expanding and extending NFE’s supply of natural gas to multiple CFE power generation facilities in Baja California Sur;
Selling NFE’s 135-MW La Paz power plant to CFE; and
Creating a new FLNG hub off the coast of Altamira, Tamaulipas, with CFE supplying feed gas to multiple NFE FLNG vessels using existing pipeline capacity.

NFE Chairman and CEO Wes Edens said the company expects to deliver its first FLNG unit by mid-2023, along with construction of a new LNG hub off the coast of Altamira.

In July 2021, the company started commercial operations at an LNG regasification terminal in the port of Pichilingue, La Paz, Baja California Sur, featuring NFE’s proprietary ISOFlex system, and supplying gas to CFE’s generation facilities in the otherwise resource-stranded region.

CFE and NFE will now extend the term and increase the volume of NFE’s gas supply agreement to CFE’s power generation facilities in the region, with NFE also selling its 135-MW Central Turbogás Amaunet power plant in La Paz to CFE.

As for the new FLNG hub off Altamira, NFE plans to deploy multiple 1.4-MMt/year FLNG units drawing on CFE’s existing pipeline transportation capacity on TC Energy’s Sur de Texas-Tuxpan pipeline for the feed gas.

The first FLNG unit is under construction at the Kiewit Offshore Services shipyard near Corpus Christi, Texas, and should achieve mechanical completion in March 2023. It will then be delivered to Altamira with operations starting soon afterward.

CFE would share in the production and marketing of a portion of the LNG volumes from the new Altamira offshore FLNG hub.

10.28.2022