New Fortress Energy Inc., the New York-based supplier of LNG for power to Latin America and Asia, has signed an accord with a subsidiary of Italy’s Eni in the Republic of Congo for the deployment of LNG production equipment off the coast of the West African nation for a period of 20 years.
NFE said it would set up its “Fast LNG” facility to produce up to 1.4 million tonnes per annum of LNG in the associated gas fields off the Congo.
The deal in the form of a preliminary Heads of Agreement provides a framework for negotiating a long-term tolling agreement between NFE and Eni.
NFE said that this would be for the full capacity of the facility and for the purchase by NFE of around 1.2 million gallons of LNG per day pursuant to a 20-year free-on-board (FOB) sales and purchase agreement.
The Republic of Congo associated gas from oil production was expected to start in the second quarter of 2023.
'Perfect partner'
“This landmark partnership is a major milestone for our ‘Fast LNG’ business. Eni is a world-class organization and the perfect partner for the first ‘Fast LNG’ unit,” said Wes Edens, Chairman and Chief Executive of NFE.
“With production beginning next year, we believe that this is just the first of many deployments of this game-changing technology around the world,” stated Edens.
“The customers at our downstream terminals need access to affordable, clean and reliable energy. Our portfolio of ‘Fast LNG’ facilities allows us to deploy offshore infrastructure more quickly and affordably, adds low-cost LNG to our existing portfolio and diversifies our business,” Edens explained.
NFE had previously signed a first African deal with the northwest African nation of Mauritania.
That NFE agreement was for the development of an energy hub, including natural gas, power and LNG, utilizing existing offshore gas reserves owned by Mauritania as well as neighbouring Senegal.
The NFE “Fast LNG” design pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than floating liquefaction vessels.
Floating storage
Under the NFE plan, a permanently moored floating storage unit (FSU) would serve as an LNG storage facility alongside the floating liquefaction infrastructure, which can be deployed anywhere where there is abundant and stranded natural gas.
NFE said the HOA with Congo is subject to the finalization and execution of definitive agreements and a set of conditions expected to be completed and satisfied by the end of March 2022.
The company is also in advanced discussions for the deployment of this technology in several other markets around the world, including offshore the US.
NFE is additionally continuing to advance LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean and in Sri Lanka in Asia.
The company executed a 15-year natural gas supply agreement in Brazil at the end of 2021.
That deal was with a subsidiary of Norsk Hydro ASA for the supply of natural gas to the Alunorte Alumina Refinery in the northern Brazilian state of Pará.
NFE said it was advancing two Brazilian projects, one in Barcarena for Norsk Hydro and a second in Santa Catarina in southern Brazil.
The company said it was also positioned to supply LNG through the Santa Catarina terminal for power plants with more than 400MW of capacity from the second quarter of 2022.
