NFE receives Mexico export permit for its Altamira Fast LNG project
NFE receives Mexico export permit for its Altamira Fast LNG project - Offshore Energy
NFE receives Mexico export permit for its Altamira Fast LNG project
US energy company New Fortress Energy (NFE) has received an export permit for its Altamira Fast LNG facility from Mexico’s Ministry of Energy (SENER).
Under the permit, NFE said it is authorised to export up to 7.8 million metric tonnes through April, 2028, providing ample capacity to support the operations of the 1.4 million tonnes per annum (MTPA) Fast LNG facility through the permitted period.
NFE previously received authorisation from the US Department of Energy to export US-sourced LNG to Mexico and other FTA countries.
Wes Edens, Chairman and CEO of New Fortress Energy, said: “This permit is the final piece to the puzzle for launching our first Fast LNG in Altamira. Obtaining this authorisation 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.”
According to NFE, construction for the first 1.4 MTPA Fast LNG unit is over 90% complete and deployment to Altamira is expected to begin this month. Operations are slated to begin in the third quarter of 2023.
To remind, NFE and Mexican state-owned electric utility Comisión Federal de Electricidad (CFE) are collaborating on the creation of a new FLNG hub off the coast of Altamira.
Pursuant to the finalised agreements, NFE will deploy multiple FLNG units of 1.4 MTPA each that utilise CFE’s existing firm pipeline transportation capacity on TC Energy’s Sur de Texas-Tuxpan Pipeline to deliver feedgas volumes to NFE.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.