‘Fast LNG’ liquefiers to produce economic LNG for growing portfolio of NFE’s terminals
LNG News Editor:
Chart Industries, the US LNG equipment maker, and two other US engineering companies received a notice to proceed from New York- based LNG-for-power firm New Fortress Energy for the engineering work for a mid-scale LNG offshore liquefaction project with 1.4 million tonnes per annum of capacity.
NFE said the floating LNG production project was expected to be completed by the end of 2022.
Chart said its content in the venture is valued at $47 million and includes its patented ISPMR process technology, brazed aluminum heat exchangers, cold boxes, heavy hydrocarbon removal system and air-cooled heat exchangers, in addition to other pertinent equipment and engineering.
“We are excited to partner with New Fortress Energy on this unique, first-of-a-kind offshore liquefaction system,” stated Jill Evanko, President and Chief Executive of Atlanta-based Chart.
“NFE continues to be an industry leader with a strategic approach to the clean energy transition and the entire value chain,” stated Evanko.
NFE’s notice to proceed also went out to Fluor Corp. of the US and Baker Hughes Co. for the construction of what NFE calls its “Fast LNG” project, which is expected to become operational in an estimated 20 months.
NFE has just made its final investment decision on the “Fast LNG” modular liquefaction facility to provide a low-cost supply of LNG for its growing customer base.
“The ‘Fast LNG’ design pairs the latest advancements in modular, midsize liquefaction technology with jack up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than today’s floating liquefaction vessels,” explained NFE in its fourth-quarter earnings just issued.
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.
“Our innovative ‘Fast LNG’ liquefiers should allow us to produce LNG between an expected $3-$4 per million British thermal units for our growing portfolio of terminals around the world,” said NFE Chief Executive and Chairman Wes Edens.
“This technology can be installed quickly and cheaply to access stranded, low-cost natural gas at a fixed price to meet the global demand for more affordable, reliable and cleaner energy,” added Edens.
“Alongside our terrific partners, we look forward to deploying one of the world’s lowest-cost LNG production facilities by 2022,” he stated.
In its earnings, NFE reported fourth-quarter revenue of $145.7 million, up from $136.9M in the previous quarter.
NFE also narrowed its net losses in the quarter to $500,000 from $36M in the previous quarter to September 2020.
During the fourth quarter NFE noted in its earnings that it had announced separate transactions for $5.1 billion enterprise value.
It acquired Hygo Energy Transition Ltd., which includes Brazil’s largest thermal power plant and three operational or in-development terminals.
NFE additionally agreed to acquire Golar LNG Partners LP, which includes stable, contracted cash flows from 13 LNG vessels.
“Once released from current contracts, these vessels will serve as NFE’s logistics backbone for terminal operations,” said the US company.
NFE added that its LNG import projects in Mexico and Nicaragua were advancing and were expected to be operational this year.