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New Fortress Energy secures LNG contract with Mexico’s CFE

LNG New Fortress

New Fortress Energy, the global energy infrastructure company, announced this Monday it has secured a liquified natural gas (LNG) contract with Mexico’s Comision Federal de Electricidad (CFE).

Firstly, New Fortress Energy signed a Gas Supply Agreement with CFEnergia del Sur, a CFE subsidiary. The agreement contemplates 250,000 to 500,000 gallons per day of LNG that New Fortress will provide to CFEnergia.

Secondly, CFEnergia will receive the LNG on its La Paz and CTG Baja California Sur power plants; in Baja California Sur, Mexico.

On the other hand, New Fortress Energy will supply the natural gas from its LNG reciving and regasification terminal, located at the port of Pichilingue, also in Baja California Sur.

In fact, the terminal is currently under construction. New Fortress Expects to complete the terminal, and start the supply of the LNG to CFE in May.

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Low cost LNG among the benefits for the region in which NFE has its terminal

Moreover, Wes Edens, New Fortress Energy CEO, said. “This contract will help create significant fuel savings and emissions reductions for the benefit of the people of Baja California Sur.”

He also noted. “We are pleased to support CFE’s transition to cleaner, more affordable and reliable energy.”

On the other hand, the construction of the terminal in Baja California spread some benefits to the Mexican region. According to Mexican news media, the construction phase of the terminal generated 226 jobs; and it would generate a 100 more when the terminal is complete.

However, the main benefit of the terminal, according to Rafael Topete, the project coordinator, is the procurement of energy, including natural gas and electricity at low costs to the region.

Finally, back in January, the company announced the consolidation of an agreement to purchase Hygo Energy, which is a company with a 50-50 joint venture between Golar LNG and Stonepeak Partners. With this, NFE expands its LNG portfolio in South America.

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