New Fortress Energy Inc. has begun commercial operations at its LNG terminal in the port of Pichilingue, Baja California Sur, Mexico on July 14 and will host an event featuring state and local officials at the terminal on July 16.
“The delivery of more affordable and cleaner-burning natural gas is a significant milestone for Baja California Sur,” Wes Edens, Chairman and CEO of NFE, said. “Our facility will enable customers to significantly reduce emissions and costs by switching from oil-based fuels to natural gas.”
The introduction of natural gas into the Baja California Sur market will help enable more energy efficiency, cost savings and emissions reductions as it displaces fossil fuels. It also provides opportunities for job creation, training of a new, more specialized workforce, economic development and improved environmental management.
The terminal features NFE’s proprietary ISOFlex system, which allows larger LNG carrier vessels to transload LNG into ISO storage containers on offshore support vessels (OSVs) with a specialized manifold. These ISO storage containers can be easily offloaded at container ports and onto trucks, which enables the reduction of time, permitting requirements and capital costs for the development of NFE’s terminals.
“We are proud to have deployed the first-of-a-kind ISOFlex system at our terminal in Baja California Sur,” Sam Abdalla, vice president of project development of NFE, said. “This is a big achievement for NFE and will enable us to deliver critical energy infrastructure and logistics solutions much more quickly and less expensively.”
Under the terms of an agreement signed in March, NFE will supply natural gas to the CTG La Paz and CTG Baja California Sur power plants in Baja California Sur through the terminal.
Additionally, NFE has nearly completed construction of its own gas-fired power plant in Baja California Sur with a capacity of approximately 135 megawatts that is anticipated to begin operations and the supply of power to the local grid later this quarter.
The Terminal’s truck loading operations were designed for the supply of LNG to local hotels and industrial customers. The first industrial customers in Los Cabos are expected to begin operations with natural gas in the next two months.
Recommended Reading
After BKV’s IPO, Is Market Open to More Public SMID Caps?
2024-10-03 - The market for new E&P and energy IPOs has been tepid since the COVID-19 pandemic. But investor appetite is growing for new small- and mid-sized energy IPOs, says Citigroup Managing Director Dylan Tornay.
Investor Returns Keep Aethon IPO-ready
2024-10-08 - Haynesville producer Aethon Energy is focused on investor returns, additional bolt-on acquisitions and mainly staying “IPO ready,” the company’s Senior Vice President of Finance said Oct. 3 at Hart Energy’s Energy Capital Conference (ECC) in Dallas.
Private Equity Gears Up for Big Opportunities
2024-10-04 - The private equity sector is having a moment in the upstream space.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Record NGL Volumes Earn Targa $1.07B in Profits in 3Q
2024-11-06 - Targa Resources reported record NGL transportation and fractionation volumes in the Permian Basin, where associated natural gas production continues to rise.