US firm is leading LNG development as the clean energy alternative for region
LNG Journal editor
New Fortress Energy, the New York-based LNG developer in the Caribbean and Central America, said it was progressing with construction of a Mexican liquefied natural gas import and regasification terminal in the port of Pichilingue on the Pacific Coast.
Over the past months, marine work at the facility in the state of Baja California Sur has been underway at the site on the northwest Coast of Mexico.
New Fortress said all the necessary permits obtained for onshore construction of the power plant, additional equipment, materials and workers will be deployed to the site to expedite completion of the project.
“The BCS (State) Government is in full readiness to achieve an energy transition that promotes new public and private investments in this sector, under a sustainability scheme that helps to avoid harming the environment,” said Governor Carlos Mendoza Davis.
New Fortress is the owner of LNG facilities in Florida and in Jamaica and projects in Puerto Rico.
It also recently signed an agreement to supply LNG to Nicaragua and to deploy a floating import as part of a power venture.
New Fortress signed a 25-year power purchase agreement with two of Nicaragua’s main electricity distribution companies as part of the project.
The Mexican facility is being constructed with power generation to provide low-cost electricity and truck loading bays for the supply of LNG to local hotel and industrial customers.
The New Fortress company is led by Wes Edens, co-founder of the private equity group Fortress Investment and who is Chairman and Chief Executive.
New Fortress made its debut on the Nasdaq global exchange in January 2019 after an initial public offering.
Edens is also a sports enthusiast and among his assets in that sphere he is co-owner of the English Premier League soccer team, Aston Villa. He also co-owns the Milwaukee Bucks, a US National Basketball Association franchise.
However, his main corporate focus now is introducing LNG to markets that lack access to the fuel.
With the project well underway, we are closer to introducing more affordable and cleaner energy for Baja California Sur,” said CEO Edens.
The terminal is in the same region of Mexico as the Costa Azul terminal, owned by a subsidiary of San Diego, California-based Sempra Energy and which is now being transformed into and export plant.
“We have witnessed how LNG supply can become a catalyst for energy diversification and economic development and look forward to seeing similar results,” add Edens.
New Fortress said it was developing LNG is an alternative source of clean and safe fuel that helps to improve energy efficiency, reduce costs and emissions over other fossil fuel sources.
The company said it also provided opportunities for job creation, training of a new, more specialized workforce, economic development and improved environmental management.
“The LNG terminal at Pichilingue port is an important infrastructure project that will undoubtedly bring significant benefits to Baja California Sur,” said José López Soto, director of Port Authority Administration of Baja California Sur.