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Government-backed energy initiatives
New Fortress Energy Inc. is partnering with Comisión Federal de Electricidad (“CFE”) as part of a growing strategic alliance supported by Mexican President Andrés Obrador and Manuel Bartlett, the CEO of CFE.
“We are pleased to complete these agreements and expand our strategic alliance with CFE, which we expect to result in the delivery of our first FLNG unit by mid-2023 and enable the construction of a new LNG hub off the coast of Altamira”, says President Obrador.
The agreement involves: expanding and extending NFE’s supply of natural gas to multiple CFE power generation facilities in Baja California Sur. Sale of the 135 MW La Paz power plant by NFE to CFE. Creation of a new floating liquified natural gas (FLNG) hub off the coast of Altamira, Tamaulipas, with CFE supplying requisite feedgas to multiple NFE FLNG units using CFE’s existing pipeline capacity.
Baja California Sur
Back in 2021, NFE commenced commercial operations of an LNG regasification terminal in the port of Pichilingue, La Paz, Baja California Sur. The terminal is positioned to supply natural gas to CFE’s generation facilities, which include CTG La Paz and CTG Baja California Sur. CFE and NFE will extend the term and increase the volume of NFE’s gas supply agreement to CFE’s power generation facilities. Additionally, NFE will sell its own 135 MW Central Turbogás Amaunet power plant in La Paz to CFE.
NFE and CFE are collaborating on the creation of a new FLNG hub off the coast of Altamira, Tamaulipas. NFE will deploy multiple FLNG units of 1.4 MTPA each that utilize CFE’s existing firm pipeline transportation capacity on TC Energy’s Sur de Texas-Tuxpan Pipeline to deliver feedgas volumes to NFE. As part of the agreements, CFE would share in the production and marketing of the LNG volumes from the new hub.