July 25, 2024 [LNG Prime]- US LNG firm New Fortress Energy has closed its previously announced $700 million loan for its second FLNG unit which it aims to install onshore in Altamira, Mexico.
According to a statement by NFE, the new loan will fully fund the construction of FLNG 2.
NFE will develop the second FLNG project in partnership with Comision Federal de Electricidad (CFE) utilizing its in-place terminal infrastructure onshore in Altamira, Mexico.
The new liquefaction unit will incorporate the same proprietary modular technology as FLNG 1 and is expected to complete construction in the first half of 2026, NFE said in the statement.
The company revealed in its fourth-quarter report in February it had secured financing commitments of $700 million for its second LNG project located onshore Altamira.
The firm said at the time it expects to begin construction on this project in April and complete it in the first quarter of 2026.
NFE previously signed a letter of intent with CFE to install FLNG units 2 and 3 onshore at the existing Altamira terminal.
The firm said that there is sufficient land for up to two 1.4 mtpa units, while the Altamira facility features two LNG tanks and a jetty.
First LNG cargo offshore Altamira in August?
NFE also revealed in the new statement that it expects to deliver the first LNG cargo from the first FLNG project in August and enter full production thereafter.
The company announced last Friday that it has achieved first LNG for its initial Fast LNG asset, but it did not mention the first cargo.
NFE’s proprietary Fast LNG design pairs the latest advancements in modular liquefaction technology with jack up rigs or similar offshore infrastructure to enable a faster deployment schedule than traditional liquefaction facilities.
NFE sent its liquefaction rig Pioneer II on September 26, 2023 to Altamira to start serving the FLNG project.
Prior to this, NFE’s utilities and accommodation rig, Pioneer III, arrived off Altamira, as well as the gas treatment rig.
The 1.4 FLNG project consists of three rigs, Pioneer I, II, and III.
Besides the three rigs, the 160,000-cbm Penguin FSU serves the project as a floating storage unit.
“Our FLNG complex is advancing at a rapid pace as we have now produced LNG at our first unit, and fully financed our second,” Wes Edens, chairman and CEO of NFE said.
“These are large infrastructure projects that add considerable financial and operational value to our company and we are thrilled with the progress to date,” he said.
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