LNG

New Fortress Energy Inc., the expanding LNG terminals, production, shipping and power assets owner, plans to hold a floating LNG investor day at the Kiewit Offshore Services shipyard near Corpus Christi in Texas.

New Fortress has chosen the energy subsidiary of Omaha, Nebraska-based construction giant Kiewit as its partner for the building of FLNG units on the US Gulf Coast and the presentation event will be held from 10:00 am Central Time on November 22.

“Specializing in the fabrication and integration of offshore projects, the 555-acre KOS facility is home to NFE’s ‘Fast LNG’ program and the ongoing conversion of marine infrastructure into floating liquefaction units,” explained NFE in a filing with the Securities and Exchange Commission.

Wes Edens, Chairman and Chief Executive of NFE, said he looked forward to hosting the event at the Texas facility.

“We expect to achieve mechanical completion of our first FLNG unit in March 2023 and deploy FLNG 1 into operation by mid-year, with additional units to follow soon thereafter,” explained Edens.

Skilled workforce

“Utilizing a highly skilled workforce on the US Gulf Coast, we have developed an efficient and repeatable construction process - essentially an FLNG factory - that substantially reduces the cost and time to build incremental liquefaction capacity to meet the urgent needs of the global energy markets,” declared the NFE CEO.

New York-based NFE also recently 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.

The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.

The US company will produce the LNG using its “Fast LNG” vessels to be built at the Kiewit yard.

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

Louisiana FLNG

The US company is additionally involved in other FLNG ventures, including one offshore the US Gulf state of Louisiana and another offshore the Republic of Congo in West Africa.

NFE is additionally advancing LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean.

NFE also said recently that it had entered a joint venture valued at $2 billion with New York-based asset management firm Apollo relating to floating storage and regasification units (FSRUs) in the LNG sector and this opened up a long-term financing arrangement.

The July 2022 deal involves NFE selling LNG infrastructure vessels it owns to the newly formed joint company whereby 80 percent would be held by Apollo funds and 20 percent by NFE.

That transaction would create a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE's LNG downstream operations and development activities, as well as Apollo's leading investment and maritime experience.

LNG FSRUs

Outwith the Kiewit Offshore Services shipyard plans NFE has an existing fleet that came from its acquisition in 2021 of Golar LNG Partners and its assorted FSRUs and LNG carriers.

The 11-vessel portfolio of the venture consists of six FSRUs, two conventional LNG carriers and three floating storage units (FSUs).

As part of the Apollo transaction, NFE has agreed to charter 10 of the 11 of the vessels from the Apollo-controlled venture for a period of up to 20 years.

Apollo is a high-growth, global alternative asset management business focusing on select investment strategies.