November 22, 2022 [Reuters] – New Fortress Energy (NFE.O) said on Tuesday it had finalized agreements with Mexican state oil company Pemex for the development of a liquefied natural gas (LNG) project associated with the country’s Lakach offshore gas field.

Last month, Mexico’s oil regulator approved a plan for developing the once-abandoned natural gas project that is believed to hold up to 937 billion cubic feet of gas reserves. Cost pressures had put the project on hold for six years.

New Fortress will develop and operate an integrated upstream project and a natural gas liquefaction plant off the coast of Veracruz in Southeastern Mexico.

It will complete seven offshore wells over a two-year period, the company said without divulging any financial details of the deal.

Mexico expects gas production at Lakach to begin in the first quarter of 2024.

New fortress and Pemex believe the Lakach field will yield about 10 years of production.

Reporting by Mrinalika Roy in Bengaluru

Pro Trial: Access 11,340 Tank Terminal and Production Facilities

11,340 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data