New Fortress Energy Inc. (NFE) said last week it has obtained an export permit from Mexico’s energy ministry Sener for the offshore Altamira Fast LNG project.
The permit allows NFE to export up to 7.8 million metric tons of liquefied natural gas through April 2028, “providing ample capacity to support the operations” of the 1.4 million metric tons/year (mmty) facility, the company said.
The Sener permit follows approval from the U.S. Department of Energy for NFE to export U.S.-sourced LNG to free trade agreement countries.
“This permit is the final piece to the puzzle for launching our first Fast LNG in Altamira,” said NFE CEO Wes Edens. “Obtaining this authorization not only paves the way for operations to commence at our new LNG hub in the third quarter of this year, but it also advances our efforts to expand access to cleaner, cheaper and more reliable energy to customers around the world.”
Construction of the first Fast LNG unit is more than 90% complete, with deployment to Altamira expected to begin this month, NFE said. “With operations slated to begin in the third quarter of 2023, NFE is on track to establish its new LNG hub, furthering its efforts to provide affordable and reliable energy solutions to customers worldwide,” management added.
In partnership with Mexico’s state power company Comisión Federal de Electricidad (CFE), NFE is exploring plans to deploy liquefaction capacity both offshore and on land at Altamira.
The idea would be to reconfigure an existing 5.7 mmty regasification terminal at Altamira for liquefaction and export to global markets.
Mexico’s president, Andrés Manuel López Obrador, touted the NFE/CFE partnership in a Twitter message ahead of the announcement, saying investment in the Altamira hub could ultimately reach $5.5 billion.
He shared a video explaining plans to procure gas for the hub from Texas through subsidiaries CFE International LLC (CFEi) and CFEnergía under a 15-year supply contract. CFEi would source gas from the Agua Dulce hub via the Valley Crossing pipeline, and CFEnergía would transport it to Altamira via the Sur de Texas-Tuxpan pipeline.
CFE would receive a 10% cut of LNG sales from the hub, according to the firm.
In a separate partnership with Mexico’s state oil company Petróleos Mexicanos (Pemex), NFE plans to install a 1.4 mmty Fast LNG unit at the Lakach deepwater natural gas field. NFE and Pemex plan to complete nine wells already drilled at the site offshore Veracruz state as part of an integrated upstream and liquefaction project.
Mexico has three liquefaction projects with a combined capacity of 7.5 mmty under construction, Poten and Partners’ Sergio Chapa, senior LNG analyst, highlighted in a recent presentation. Another eight projects totaling 50.2 mmty are proposed.
