New Fortress Altamira FLNG Terminal

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New Fortress Altamira FLNG Terminal is a floating liquefied natural gas (FLNG) export terminal under construction in Mexico.

Location

The terminal is proposed to be located about 25 km offshore from the Port of Altamira, and 15 km offshore from the municipality of Aldama, Tamaulipas, Mexico.

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Project details

• Operator:

• Owner: New Fortress Energy

• Parent company: New Fortress Energy

• Location: off the coast of Altamira, Tamaulipas, Mexico

• Coordinates: 22.65430, -97.68048 (exact)

• Capacity:
  • Train 1: 1.4 million tonnes per annum (mtpa)
  • Train 2: 1.4 million tonnes per annum (mtpa)
  • Train 3: 1.4 million tonnes per annum (mtpa)

• Trains: 3

• Status:
  • Train 1: Operating
  • Train 2: Construction
  • Train 3: Construction

• Type: Export

• Start year:
  • Train 1: 2023
  • Train 2: 2025
    • Formerly 2024
  • Train 3: 2025
    • Formerly 2024

• Cost: US$1.3 billion

• Financing:

• FID status:
  • Train 1: FID
  • Train 2: pre-FID
  • Train 3: pre-FID

• Associated infrastructure: Sur de Texas-Tuxpan Pipeline

Background

In July 2022, New Fortress Energy (NFE) announced an agreement with Mexico's Comision Federal de Electricidad (CFE) to collaborate on several gas developments, including New Fortress' deployment of a floating LNG (FLNG) hub offshore Altamira, with feedgas to be supplied from CFE's existing pipeline capacity. New Fortress stated that it would deploy two or more FLNG units within the hub, each with a capacity of 1.4 mtpa. New Fortress planned to deploy its "fast LNG” design, incorporating modular, midsize liquefaction technology with jack up rigs or similar offshore infrastructure.

In its February 2023 Form 10-K filing with the SEC, NFE confirmed that it had reached preliminary agreements with Mexico's CFE (Comisión Federal de Electricidad) allowing it to source feedgas volumes from the Sur de Texas-Tuxpan Pipeline, paving the way for the company to deploy the first of its two proposed 1.4 mtpa FLNG units in 2023.

In June 2023, NFE announced that Mexico's Energy Ministry (SENER) had issued a permit allowing the company to export up to 7.8 million metric tons of LNG through the Altamira terminal by April 2028. Construction of the terminal's initial offshore unit was said to be 90% complete, with NFE expecting to begin commercial operations in the third quarter of 2023. The company had previously received authorization from the US Department of Energy to export US-sourced gas via pipeline to the Altamira Terminal, and to re-export LNG produced at the Altamira Terminal to Mexico and other FTA countries through December 31, 2050.

In July 2023, NFE received authorization from Mexico's CFE to transport gas by pipeline to the project.

As of August 2023, the first unit was expected to be launched in September and receive its first commercial cargo in October. The same month, New Fortress said the second and third units were under construction and expected to being operations in 2025.

Gas was "first achieved" for the first train in November 2023, and this is considered to be the start of operations.

Expansion plans and potential development of onshore infrastructure

As of May 2023, NFE was reportedly planning to supplement the initial offshore production unit with two additional units to be constructed onshore at the underutilized Altamira LNG Import Terminal. Reuters reported that Units 2 and 3 were already under construction, with installation scheduled for August and September 2024, respectively. However, a subsequent report from ICIS (Independent Commodity Intelligence Services) indicated that development of Units 2 and 3 remained contingent on bilateral negotiations.

In October 2023, the US Dept of Energy (DOE) contacted New Fortress Energy seeking clarification regarding location of future infrastructure. In an October 2023 report filed with the U.S. Securities and Exchange Commission (SEC), New Fortress Energy stated that Train 2 of the Altamira LNG export facility would be based onshore, directly contradicting NFE's earlier description of Altamira 2 as an offshore facility in the company's original application to the DOE. In its letter, DOE noted that any such change in location would be considered a material change requiring NFE to amend its application and officially request an amended FTA order.

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.