LNG

Jan 29 (LNGJ) - New Fortress Energy Inc., the New York-based developer of liquefied natural gas import and export projects, said that US Customs and Border Protection had issued a ruling confirming that the transportation of LNG produced at the company’s FLNG facility located offshore Altamira in Mexican waters by non-US qualified vessels would not violate the Jones Act. The Jones Act is legislation passed back in 1920 that requires goods moved between US ports to be carried by US-flagged ships.

   As a result of this ruling, NFE said it would now be able to sell and deliver LNG produced at its FLNG Altamira facility to US locations, including Puerto Rico, described by the company as a key downstream market. “We are extremely pleased to receive this ruling for our FLNG facility since it not only supports one of the company’s largest projects but also supports the people of Puerto Rico,” said Wes Edens, Chairman and Chief Executive of NFE. The US Government last issued a waiver of the Jones Act shipping rules to help the US territory of Puerto Rico attract LNG shipments amid a tight market and high prices after a 2022 hurricane.

New Fortress Energy, the US LNG production and import projects developer, reported a jump in revenues and a swing to profits in the third quarter while forecasting bumper earnings from floating LNG production projects.

New Fortress Energy, the US LNG production and import projects developer, said that it finalized agreements with Mexico’s Federal Electricity Commission (CFE), including plans for an offshore production hub near the Gulf of Mexico import terminal at Altamira.

NFE said that its Mexican accords were fully supported by Mexican President Andrés Manuel López Obrador and by Manuel Bartlett, the Chief Executive of the CFE.

The New York-based company noted that the final versions of the agreements would be signed at a ceremony on November 3 in Mexico City.

The NFE-Mexican accords cover the expansion and extensions of NFE’s supply of natural gas to multiple CFE power generation facilities in the northwest Mexican state of Baja California Sur.

IT additionally includes the selling of NFE’s 135-megawats La Paz power plant to CFE as well as the new FLNG hub off the coast of Altamira in the state of Tamaulipas.

For the LNG production hub, NFE said that the Mexican side through the CFE would be supplying the requisite feed-gas to multiple NFE FLNG units using CFE’s existing and under-utilized pipeline capacity.

Strategic alliance

“We are pleased to complete these agreements and expand our strategic alliance with CFE, which we expect to result in the delivery of our first FLNG unit by mid-2023 and enable the construction of a new LNG hub off the coast of Altamira,” explained Wes Edens, Chairman and CEO of NFE.

“I look forward to seeing President López Obrador next week, appreciate his continued support, and value the opportunity to demonstrate our commitment to producing cleaner, cheaper and more reliable energy for Mexico and the world,” declared Edens.

NFE commenced commercial operations in July 2021 at an LNG regasification terminal in the port of Pichilingue in Baja California Sur.

The US company noted that the terminal, which features NFE’s proprietary “ISOFlex system”, is positioned to supply natural gas to CFE’s generation facilities in the otherwise resource-stranded region.

For the Altamira operations in the Gulf of Mexico, NFE and the CFE are fully collaborating on the creation of the new FLNG hub.

Pursuant to the now finalized agreements, NFE will deploy multiple FLNG units of 1.4 million cubic metres capacity each that utilize CFE’s existing firm pipeline transportation capacity on Sur de Texas-Tuxpan Pipeline to deliver feed-gas volumes to NFE.

The Sur de Texas-Tuxpan Pipeline is operated by Canadian company TC Energy.

NFE’s first FLNG unit, which is under construction at the Kiewit Offshore Services shipyard near Corpus Christi in Texas, is currently expected to achieve mechanical completion in March 2023.

“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,” said NFE.

Delfin LNG, the US floating liquefaction and export project proposed for offshore and onshore Louisiana and with a recently signed supply deal with global commodities firm Vitol, has filed with the Federal Energy Regulatory Commission for a fourth extension of permits to complete the venture’s onshore facilities.

New Fortress Energy Inc, the expanding LNG terminals, production, shipping and power assets owner has signed an agreement with Mexico’s national energy company Petróleos Mexicanos (Pemex) to form a strategic partnership including a floating LNG project in the Gulf of Mexico.