New Fortress Energy Inc., the New York-based LNG and power project company, has signed an agreement with a unit of the Mexican Federal Electricity Commission for the supply of regasified LNG from a new import facility within the next three months to two generating plants in the northwest state of Baja California Sur.
Under the agreement, New Fortress will provide the equivalent of an estimated 250,000-500,000 gallons of LNG (20,000-40,000 million British thermal units) per day to CFE’s CTG La Paz and CTG Baja California Sur power plants.
“We are pleased to support CFE’s transition to cleaner, more affordable and reliable energy,” said Wes Edens, Chairman and Chief Executive of New Fortress.
“This contract will help create significant fuel savings and emissions reductions for the benefit of the people of Baja California Sur,” added Edens.
The US company will supply regasified LNG to the plants to replace fuel oil via the company’s onshore receiving terminal facilities being completed in the port of Pichilingue in Baja California Sur.
The terminal is anticipated to come on line and begin the supply of natural gas to CFE in May 2021, though the company has released few details on LNG delivery and storage.
Pichilingue Port's LNG facility, located just north of La Paz, the Baja California Sur state capital, will be the third in Mexico when it enters service.
The two other Mexican LNG terminals are on the Gulf Coast at Altamira and south of Baja California on the Pacific Coast at Manzanillo.
The Pichilingue LNG facility will introduce natural gas to Baja California Sur for power generation for the first time. The state is in the lower part of the Baja California Peninsula and also currently lacks adequate onshore gas infrastructure.
New Fortress has a similar import facility in Jamaica in the Caribbean using floating storage that began operations in 2016 and another project in Puerto Rico.
The company is also working on a venture to supply regasified LNG to a 300 megawatts gas-fired power plant at Puerto Sandino in Nicaragua.