LNG

New Fortress Energy Inc., the US LNG and power company that owns and operates facilities in five countries, has agreed to sell its small-scale liquefaction and storage facility in Miami in Florida.

The facility is being sold to a US middle-market infrastructure fund, which NFE declined to name along with the value of the transaction. NFE added that the transaction was expected to close in the third quarter of 2024 subject to customary terms and conditions.

The small-scale LNG liquefaction plant in Miami can process 100,000 gallons of natural gas every day for delivery to commercial, industrial and transportation customers throughout South Florida and the Caribbean.

The facility has three LNG storage tanks with a total capacity of around 1,000 cubic metres as well as two separate LNG transfer areas capable of serving both truck and rail.

Export permit

The facility is additionally authorized to export up to 60,000 tonnes per annum of LNG to Free Trade Agreement and Non-FTA countries for a 20-year term that began on February 5, 2016.

“The Miami Facility is the inaugural asset of NFE and we are proud to have built this best-in-class infrastructure,” said Wes Edens, Chairman and Chief Executive of NFE, listed on the Nasdaq global exchange.

“The sale highlights our commitment and execution of our asset sale program, allowing us to reduce debt and recycle proceeds into high return downstream projects,” Edens added.

The Miami plant sale follows NFE’s decision in mid-June to push back the schedules for first LNG at its floating liquefaction plant offshore Altamira in the Gulf of Mexico. The first cargo is being shipped during July rather than June

Mexico cargoes

The FLNG production facility is located in Mexican waters of the Gulf of Mexico offshore the port of Altamira where there is already an onshore LNG import terminal.

NFE said that the work necessary to begin operations was complete and the company had also completed the full remainder of pre-commissioning activities.

The FLNG facility has also received a positive ruling from the US Customs and Border Protection agency confirming that the transportation of LNG produced at NFE’s FLNG unit can transport cargoes on non-US Jones Act qualified vessels.

As a result of this ruling, NFE will be able to sell and deliver LNG produced at its FLNG facility offshore Mexico to US locations, including the territory of Puerto Rico.

The progress on FLNG in the Gulf of Mexico comes amid advances in import and power projects in the South American nation of Brazil.

NFE has now commenced operations in Brazil at both of its LNG import terminals and has 2.2 gigawatts of power plants under construction.

New Fortress Energy, the US LNG and power company that owns and operates facilities in five countries, has extended the schedules for first LNG at the floating liquefaction plant offshore Altamira in the Gulf of Mexico and the first cargo will now be shipped in July rather than June.

Wes Edens, Chairman and Chief Executive of New York-based NFE, had previously said that the first cargo from the FLNG facility was expected in June.

The FLNG production facility is located in Mexican waters of the Gulf of Mexico offshore the port of Altamira where there is already an onshore LNG import terminal.

“The company has made tremendous progress on its path towards the start of liquefaction operations,” said a statement from New Fortress, which is listed on the Nasdaq global exchange

“As of June 14, the work necessary to begin operations is complete and the company has also completed the full remainder of pre-commissioning activities,” explained NFE.

Revisions

“The company now expects to produce LNG in the next 10 days, and then expects to be able to deliver its first cargo in July,” the company added.

The FLNG facility has also received a positive ruling from the US Customs and Border Protection agency confirming that the transportation of LNG produced at NFE’s FLNG unit can transport cargoes on non-US Jones Act qualified vessels.

As a result of this ruling, NFE will be able to sell and deliver LNG produced at its FLNG facility offshore Mexico to US locations, including the territory of Puerto Rico.

The progress on FLNG in the Gulf of Mexico comes amid advances in import and power projects in the South American nation of Brazil.

NFE has now commenced operations in Brazil at both of its LNG import terminals and has 2.2 gigawatts of power plants under construction.

One of the NFE Brazilian terminals is located at Barcarena in the northeast state of Pará.

The second is at Santa Catarina, located in the state of the same name in the far south of Brazil.

NFE noted that along with the existing 630 megawatt power plant and a 25-year agreement, the Barcarena terminal would supply LNG to power capacity owned by NFE.

New Fortress Energy, the US integrated LNG and power company that owns, operates or provides natural gas to 30 facilities in five countries has been awarded a new gas supply contract in Puerto Rico.

NFE said the Puerto Rico gas contract more than doubles the volumes of gas it currently provides to power plants in the US territory in the Caribbean.

The New York-based company additionally sold two operating power plants to the Puerto Rico Electric Power Authority (PREPA).

NFE explained that it sold the emergency power plants it constructed on behalf of the US Army Corps of Engineers in San Juan and Palo Seco in Puerto Rico to PREPA for $373 million in cash, subject to certain items and conditions.

Power security

“These plants were developed by the company in 2023 in rapid response to a competitive bid by the US Army Corps of Engineers to provide emergency power in order to stabilize the power grid in Puerto Rico,” explained NFE.

“They have become a cornerstone of Puerto Rico's energy portfolio, delivering critical baseload power to stabilize the grid in the aftermath of recent natural disasters, and as contemplated, their ownership has been transferred to PREPA,” NFE added.

Following a competitive bid process, NFE was awarded and has entered into a new island-wide gas supply contract with PREPA, ensuring continued gas supply to these power plants for up to four years.

“The expanded volumes under the contract will enable conversion of other plants on the island from diesel to gas, providing lower cost, cleaner energy to Puerto Rico,” NFE stated.

As a result of the early termination of the contracts that have governed the construction, operations and associated costs of the two power plants, NFE said that it expected to negotiate a mutually beneficial settlement of all outstanding obligations in the near future.

“We entered the Puerto Rico market in 2017 based on the island’s emergency need for natural gas and power,” said Wes Edens, Chairman and Chief Executive of NFE.

“The transactions mark a significant milestone in our continued commitment to Puerto Rico's energy security and cost reduction efforts while significantly increasing our business in the region,” Edens added.

LNG projects

In its most recently earnings, NFE reported net income for 2023 of $547.88M, an almost three-fold increase from the $194.48M achieved in 2022.

After the end of the financial year NFE noted that in February 2024 it completed the Brazilian Barcarena and Santa Catarina LNG import terminals and placed them into service.

In NFE’s “Fast LNG” operation whereby it produces LNG from feed gas, it placed into service its first unit offshore the Gulf of Mexico and is now expecting first LNG in March and the first cargo in April 2024.

New Fortress Energy, the New York-based developer of liquefied natural gas import and export projects, has entered into a definitive agreement to charter the “Energos Winter”, a floating storage and regasification unit (FSRU), from Brazilian state company Petróleo Brasileiro (Petrobras) and with the FSRU being deployed in the south of the country.

NFE said that the “Energos Winter” charter from Petrobras would start in December and the FSRU would “immediately” be deployed to the Terminal Gas Sul (TGS), NFE’s newest LNG import facility in the state of Santa Catarina.

The US company said that the TGS terminal project would thus begin commercial operations ahead of schedule in January 2024.

NFE is currently completing two terminals projects in Brazil, one at Santa Catarina and a second at Barcarena in the state of Pará in the far northeast of Brazil.

Growth opportunity

“We are extremely pleased to reach this agreement with Petrobras and begin operations at the TGS terminal in Santa Catarina, Brazil ahead of schedule in January 2024,” said NFE Managing Director Andrew Dete.

“The TGS terminal is a unique, high-growth opportunity for NFE, as connection to the pipeline system in south Brazil offers a diverse and near-term set of opportunities across power and gas supply,” Dete explained.

The “Energos Winter” will be sub-chartered by NFE through the remaining term of the Petrobras charter with Energos Infrastructure and then direct-chartered by NFE on a long-term basis with Energos.

“This will enable NFE to commence commercial operations at TGS in January 2024 and continue uninterrupted service on a long-term basis,” said NFE.

Energos Infrastructure, the owner of the “Energos Winter” FSRU, is owned 80 percent by funds managed by New York equity firm Apollo and 20 percent owned by NFE.

LNG production

NFE is on course to start LNG production and export operations by early 2024 at Mexico’s first production facility with capacity of 1.4 million tonnes per annum.

NFE’s “Fast LNG” project comprises modular, midsize liquefaction technology with jack-up rigs to enable lower costs

The US company and Mexico's state-owned power utility, the Comisión Federal de Electricidad (CFE), have set up the LNG hub in Altamira in the Gulf of Mexico to convert Mexican natural gas into LNG for export.

Each of NFE’s three parts of the first “Fast LNG” project were completed at the Kiewit Offshore Services yard in Ingleside in Texas.

The company said that the first “FLNG 1” liquefaction operating facility is being deployed in Mexican waters at a cost of just $1.3 billion, far below the cost of other proposed projects.

New Fortress Energy, the New York-based developer of liquefied natural gas import and export projects, has confirmed it placed US-government power plants in Puerto Rico into service and confirmed the operational date for the floating LNG production facility offshore the Mexican port of Altamira in the Gulf of Mexico.

“The third and final rig of FLNG 1, ‘Pioneer II’, sailed away (Sept. 26) from the Kiewit shipyard in Ingleside, Texas,” said New Fortress.

“This rig will soon join the other two FLNG 1 rigs in Altamira for final installation and commissioning, with target commercial operation date (COD) in late October or early November,” the company stated.

NFE also announced that it had placed into service its second US government-sponsored power plant in Puerto Rico.

“This facility in San Juan has a capacity of 200+ megawatts of power generation and operates under a two-year contract, similar to the 150 MW facility in Palo Seco that entered service in June under the same program,” NFE explained.

Contracts

Both power installations operate under multi-year contracts with the US government, which pays for fuel, logistics and all power infrastructure.

The company said that it was “extremely pleased” to see the successful construction and installation of these two power plants in record time by the independently managed NFE subsidiary, Genera PR LLC.

“We believe these plants provide significant reliable and efficient power to the Puerto Rico power market, helping to ensure better grid reliability,” said Wes Edens, Chairman and Chief Executive of NFE.

“NFE is at an inflection point as our core infrastructure projects enter service. The combination of the San Juan plant and the Palo Seco plant contribute significantly to downstream volumes and terminal earnings in Q4 2023,” Edens explained.

“Our projects are entering service after years of build-out, and we now look forward to cash generation, deleveraging and organic growth opportunities,” the CEO stated.

NFE is also on course to start LNG production and export operations in the weeks ahead, the first ever from Mexico, of the Altamira facility with capacity of 1.4 million tonnes per annum.

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs to enable lower-cost and faster deployment schedules.

LNG hub

The US company and Mexico's state-owned power utility, the Comisión Federal de Electricidad (CFE), have set up the LNG hub in Altamira in the GoM to convert Mexican natural gas into LNG for export.

Each of NFE’s three parts of the first “Fast LNG” project were completed at the Kiewit yard in Ingleside.

The company said that the first “FLNG 1” liquefaction operating facility is being deployed in Mexican waters at a cost of just $1.3 billion, far below the cost of other proposed projects.

The US firm received an export permit in June 2023 for the Altamira ‘Fast LNG’ facility from Mexico’s Ministry of Energy.

Under the permit, NFE is authorised to export up to 7.8MT of LNG through April 2028, providing ample capacity to support the operations of the planned 1.4 MTPA facility through the permitted period. 

New Fortress Energy Inc. the US developer of floating LNG production and import terminal and power projects, has signed agreements to provide gas-fired power and natural gas to the US Caribbean territory of Puerto Rico.

NFE said its Puerto Rican subsidiaries, NFE Power PR and NFEnergia, had entered into agreements with the US-based industrial and energy company, Weston Solutions, for the installation and operation of 150 megawatts of additional power generation at the Palo Seco Power Plant in Puerto Rico as well as the supply of natural gas.

“Weston has won a task order to supply the temporary power generation to support the overall mission of the island’s grid stabilization at the Palo Seco Power Plant under its US Army Corps of Engineers Omaha Rapid Disaster Infrastructure contract,” explained NFE.

“The 150 MW of dual-fuel generators are expected to enable maintenance and repair work of Puerto Rico’s power system and grid,” added the New York-based company.

Wes Edens, the Chairman and Chief Executive NFE, said he was pleased to partner with Weston and support this “critical mission” to improve grid stability in Puerto Rico.

Federal help

“The Federal Government is providing much-needed resources to Puerto Rico’s recovery and this project will help enable the transition to a cleaner, more affordable and reliable energy system,” stated Edens.

NFE on March 7 had reported increased annual revenues and net profits as its array of projects advanced.

The total annual revenues of NFE jumped almost 80 percent to $2.36 billion, up from $1.32Bln in 2021.

NFE’s annual net profits amounted to $185M compared with $93M in 2021.

The company also completed the Barcarena LNG import terminal in Brazil and expects to deliver first gas to the industrial customer, Norsk Hydro, later in 2023.

NFE said construction of its Fast LNG production units was progressing rapidly with the first FLNG unit expected to achieve mechanical completion in the Spring of 2023 and commence operations by mid-2023, explained NFE.

Ship venture

NFE also closed a $2Bln transaction to form a joint venture called Energos Infrastructure with US equity fund Apollo Asset Management in which NFE holds long-term charters for 10 LNG vessels.

Then in response to the European energy crisis, the Eems Energy Terminal in The Netherlands commenced operations in September 2022 utilizing NFE's “Energos Igloo” FSRU.

The company also finalized its partnership terms with state-backed energy company Petróleos Mexicanos (Pemex) to jointly develop the Lakach deepwater natural gas field in the Gulf of Mexico and to deploy a “Fast LNG” unit to that location.

New Fortress Energy Inc., the US developer of floating LNG production and import terminal projects, reported soaring annual revenues and net profits as its array of projects advanced.

New Fortress Energy (NFE), the US LNG-for-power project developer has reached an agreement with shipping company Golar LNG for the sale of NFE’s ownership stake in a floating LNG production hull deployed off Cameroon in West Africa.

New Fortress Energy, the developer of LNG production, regasification and electricity projects and with a small shipping fleet, said its Genera subsidiary was selected by Puerto Rico to manage the US Caribbean territory’s power generation system.

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.