US LNG firm New Fortress Energy nears launch of Altamira FLNG project

NFE has said it is closing in on the launch of its first floating LNG (FLNG) project off Altamira, Mexico despite a delay in the expected timeline the company announced in a statement in June. 

On 26 September, NFE’s liquefaction rig, Pioneer II, set sail from the Kiewit Offshore Services shipyard in Ingleside, near Corpus Christi, Texas, in the US, under tow and en route to Altamira. Jack-up rig Pioneer II will join two other FLNG rigs already on site in Altamira for final installation and commissioning, with a target completion date in late October or early November, according to an NFE statement issued last week.

NFE’s first utility and accommodation rig, Pioneer III, arrived off Altamira last month, and the other two rigs making up the project have quickly followed in the US$1.3Bn FLNG project, which consists of Pioneer I, Pioneer II and Pioneer III, dedicated to gas treatment, liquefaction and utilities and accommodation, respectively.

The company’s 160,000-m³ floating storage unit NFE Penguin (formerly Golar Penguin) is also destined for Altamira. VesselsValue’s AIS data shows the converted LNG carrier currently anchored near Kingston, Jamaica.

During the company’s Q2 earnings call in August, NFE head of finance Chris Guinta said the company had expected to introduce the first gas from the Altamira so-called Fast LNG project in September, sell the inaugural LNG cargo in October and had planned to install Pioneer I and Pioneer II in August. 

As part of its operations, NFE received an export permit for its Altamira Fast LNG facility from Mexico’s Ministry of Energy in early June, calling the permit "the final piece of the puzzle for launching our first Fast LNG in Altamira". Under this permit, NFE is authorised to export up to 7.8M tonnes through April 2028, providing more than enough capacity to support the operations of the 1.4M tonnes per annum Fast LNG facility throughout the permitted period.

In 2022, NFE signed agreements with CFE and Pemex to install LNG production units off the coast of Altamira, creating a new FLNG hub. And NFE inked a letter of intent with CFE earlier in 2023 to install second and third units onshore at the existing Altamira terminal. The transformation of the LNG import terminal into an export facility follows the legacy of Sabine Pass nearly a decade ago, as NFE aims to tap into the potential of the Mexican LNG market.

"NFE is at an inflection point as our core infrastructure projects enter service," NFE chairman and chief executive Wes Edens said. "Our projects are entering service after years of buildout, and we now look forward to cash generation, deleveraging and organic growth opportunities."