Lakach Field FLNG Terminal

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

Sub-articles:

FrackSwarm portal Coal terminals Coal transport and infrastructure Oil and gas pipelines LNG terminals Pipeline construction costs Methodology and data notes

Lakach Field FLNG Terminal is a floating liquefied natural gas (FLNG) export terminal proposed off the coast of Mexico.

Location

The terminal is proposed to be located 70 km off the coast of Veracruz, Mexico.

Loading map...

{"type":"SATELLITE","minzoom":false,"maxzoom":false,"types":["ROADMAP","SATELLITE","HYBRID","TERRAIN"],"mappingservice":"googlemaps3","width":"400px","height":"300px","centre":false,"title":"","label":"","icon":"","lines":[],"polygons":[],"circles":[],"rectangles":[],"copycoords":false,"static":false,"visitedicon":"","wmsoverlay":false,"zoom":20,"layers":[],"controls":["pan","zoom","type","scale","streetview","rotate"],"zoomstyle":"DEFAULT","typestyle":"DEFAULT","autoinfowindows":false,"resizable":false,"kmlrezoom":false,"poi":true,"cluster":false,"clustergridsize":60,"clustermaxzoom":20,"clusterzoomonclick":true,"clusteraveragecenter":true,"clusterminsize":2,"imageoverlays":[],"kml":[],"gkml":[],"searchmarkers":"","fullscreen":false,"scrollwheelzoom":false,"locations":[{"text":"","title":"","link":"","lat":19.2933,"lon":-95.4018,"icon":""}]}

Project details

• Operator: New Fortress Energy

• Owner: New Fortress Energy

• Parent company: New Fortress Energy

• Vessel: Sevan Driller
• Vessel operator: New Fortress Energy
• Vessel owner: Sevan SSP
• Vessel parent company: SCM (Sembcorp Marine)

• Location: 70 km off the coast of Veracruz, Mexico, in the Lakach gas field

• Coordinates: 19.2933, -95.4018 (approximate)

• Capacity: 1.4 million tonnes per annum (mtpa)

• Trains: 1

• Status: Proposed

• Type: Export

• Start year: 2024

• Financing:

• FID status: Pre-FID

• Associated infrastructure: Lakach oil and gas field

Background

In July 2022, New Fortress Energy announced that it had signed a long-term partnership with Mexico's Pemex to jointly develop the Lakach deepwater natural gas field. Pemex will deliver gas to domestic markets in Mexico, and New Fortress will develop a floating LNG (FLNG) terminal from which it will export LNG to global markets. New Fortress plans to deploy its "fast LNG” design that incorporates modular, midsize liquefaction technology with jack up rigs or similar offshore infrastructure.

The Lakach field is one of the largest non-associated gas fields in the Gulf of Mexico with total original gas in place of 1.1 trillion cubic feet. According to New Fortress, it comprises one of the most significant undeveloped offshore gas resources in the Western hemisphere, along with the nearby undeveloped fields of Kunah and Piklis. New Fortress and Pemex believe that they can produce 10 years of gas from the Lakach gas field. The Lakach FLNG terminal would offer an alternative to the Lakach Gas Pipeline, which was an earlier proposal to bring Lakach field gas to market.

In November 2022, New Fortress Energy confirmed further details of its strategic partnership with Pemex. Under the deal, NFE would assume responsibility for developing the Lakach field, drilling seven offshore wells and deploying its 1.4 MTPA Sevan Driller FLNG unit to liquefy the majority of the natural gas produced. The agreement would allow NFE to purchase 190 million cubic feet of gas per day (MMcfd) from Pemex and process it for export, with Pemex retaining rights to the remaining 110 MMcfd for domestic use.

In November 2022, New Fortress Energy's CFO Christopher Guinta said that NFE hoped to finish construction of the Lakach FLNG Terminal by April 2024 and begin commercial operations later that same year, although subsequent reports have called this timeline into question.

In March 2023, New Fortress Energy downgraded its forecasted LNG from its facilities. In Q3 2022, the firm stated that it would produce 6.7 mtpa as of 2024-2025. As of March, the firm said that it only expected 1.4 mtpa, or one unit, to be operational between mid-2023 and 2025, which is likely to be New Fortress Altamira FLNG Terminal off the coast of Mexico. The Lakach Field proposal is therefore likely delayed.

In May 2023, the company's CEO stated that they are still actively working on engineering and permitting for the terminal.

Opposition

Numerous citizens' groups in Mexico, including Greenpeace, Nuestro Futuro, Alianza Mexicana Contra el Fracking, Conexiones Climáticas and Planeteando have called for the government to cancel all pending LNG export terminal projects in the country. The groups argue that LNG terminals create a host of serious negative impacts for local communities, including health effects from toxic chemicals such as benzine and nitrogen oxides, climate change associated with heightened levels of greenhouse gas emissions, devastation of marine life due to dredging, and the associated negative economic impacts on fisheries.