NFE’s 1.4 mtpa Fast LNG 1 asset recently shipped its first cargo of LNG.
Back in September 2022, NFE Altamira FLNG, a unit of NFE, filed an application with the DOE requesting long-term, multi-contract authorization to export US-sourced natural gas to Mexico, and after liquefaction in Mexico, to re-export the volumes as liquefied natural gas (LNG).
NFE’s unit requested authorization to both FTA and non-FTA nations.
On March 3, 2023, DOE granted the FTA portion of the application.
The Biden administration and the DOE announced in January this year that the DOE will temporarily pause review and approval of all new and pending applications for export authorization to non-FTA countries while DOE updates its assessment process.
The DOE has not issued non-FTA approvals since then.
The regulator said in its order dated August 31 it has “not found an adequate basis to conclude that NFE Altamira re-exports of US-sourced natural gas as LNG from Mexico for delivery to non-FTA countries will be inconsistent with the public interest.”
DOE granted the non-FTA portion of the application in the full volume requested: 145 Bcf/yr of natural gas, or 0.40 Bcf/d.
“Nonetheless, because the record is incomplete, we cannot assess all impacts for the requested export term ending on December 31, 2050, and thus conclude that a five-year export term is appropriate at this time,” it said.
“When DOE has a more complete record on which to evaluate NFE Altamira’s initial request for an export term through 2050, DOE will reevaluate the export term upon NFE Altamira’s request to amend this order filed no sooner than two years from the date of this order,” it said.
Including this order, and the vacatur of previous long-term non-FTA export authorizations, there are currently 40 final non-FTA authorizations from the lower-48 states in a cumulative volume of exports totaling 46.45 Bcf/d of natural gas, or about 17 trillion cubic feet (Tcf) per year, the DOE said.
Altamira LNG
NFE recently resumed LNG production at its Fast LNG 1 asset off Altamira after completing scheduled maintenance.
This planned outage followed the first LNG cargo which occurred on August 9.
NFE loaded a partial cargo onboard the 138,000-cbm Energos Princess.
The Wes Edens-led firm said this cargo will be delivered to NFE’s La Paz, Mexico terminal.
According to its AIS data provided by VesselsValue, Energos Princess was on Tuesday located offshore Mexico’s Pacific coast and it appears to be heading to La Paz.
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.
The company previously said the FLNG project adds more than $2 billion of infrastructure to its asset base.
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 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.
In addition to this project, NFE recently closed its previously announced $700 million loan for its second FLNG unit which it aims to install onshore in Altamira.
