New Fortress to supply LNG for Mexican power

US-based New Fortress Energy said March 29 it had signed a deal with the Mexican government to supply LNG to its power plants.

New Fortress Energy (NFE) signed a gas supply agreement with a subsidiary of Mexico’s Federal Electricity Commission (CFE) to send LNG from its regasification terminal in Mexico’s Baja California Peninsula to two regional power plants.

“We are pleased to support CFE’s transition to cleaner, more affordable and reliable energy,” CEO Wes Edens stated.

Still in the completion stage, NFE said its Baja facility would be able to supply as much as 500,000 gallons of LNG/ day to Mexican power stations by May.

In December, NFE signed long-term deals to procure LNG for its gas and power businesses in Puerto Rico, Mexico and Nicaragua. Together with previous purchase agreements for its Jamaican operations, the company said those contracts would cover 80% of expected needs across its portfolio of terminals and other assets.

NFE commissioned an LNG import facility in Puerto Rico in 2018 that supplies gas to a combined-cycle power plant, while its regasification projects in Mexico and Nicaragua are still under development.