New Fortress sends last Fast LNG rig to Mexico
New Fortress Energy (NFE) said September 29 the third and final rig of FLNG 1, its first Fast LNG installation, had departed the Kiewit shipyard in Ingleside, Texas.
The rig, dubbed Pioneer II, will join two other floating LNG (FLNG) rigs already in place offshore Altamira, Mexico for final installation and commissioning. Commercial operations are targeted for late October or early November, a month later than NFE anticipated in August 2023. No reason for the delay was given.
“Our projects are entering service after years of buildout, and we now look forward to cash generation, deleveraging, and organic growth opportunities,” NFE CEO Wes Edens said.
FLNG 1, capable of producing about 1.4mn tonnes/year of LNG, will be the first component of a broader LNG hub that will operate in the Altamira region of Mexico. The hub is being developed in partnership with CFE, Mexico’s state-owned electric utility.
FLNG 2 and FLNG 3, each rated at 1.4mn tonnes/year, are under construction, with commercial operations targeted for Q1 2025, NFE said in August. Current plans call for the two units to be installed onshore at an under-utilised import terminal at Altamira.
New Fortress also said it had placed into service its second US government-sponsored gas-fired power plant in Puerto Rico. The 200 MW facility in San Juan operates under a two-year contract with the US government, similar to the 150-MW facility at Palo Seco NFE placed into service in June, under which the US pays for fuel, logistics and all power infrastructure.
“We believe these plants provide significant reliable and efficient power to the Puerto Rico power market, helping to ensure better grid reliability,” Edens said.