New Fortress Energy Inks LNG Supply Deal with Mexico’s CFE in La Paz, BAJA

Natural gas infrastructure firm New Fortress Energy will supply fuel to two gas-fired plants in Mexico’s Baja California Sur region.

The company will deliver the equivalent of about 250,000 to 500,000 gallons of liquefied natural gas (LNG) per day to the LaPaz and Baja California Sur power plants. Both are owned and operated by Mexico’s Federal Electricity Commission (CFE).

“We are pleased to support CFE’s transition to cleaner, more affordable and reliable energy,” said Wes Edens, Chairman and CEO of New Fortress Energy. “This contract will help create significant fuel savings and emissions reductions for the benefit of the people of Baja California Sur.”

New Fortress Energy will supply natural gas to the plant via the Company’s liquefied natural gas (LNG) receiving and regasification terminal in the port of Pichilingue, Baja California Sur, Mexico. The terminal is anticipated to be complete and begin the supply of natural gas to CFE in May.

Last year, S&P Global reported that Mexico was reviving its natural gas delivery project for the power generation plants in the Baja California Peninsula.

New Fortress, formed in 2014, builds and operates LNG import terminals to supply natural gas to customers. It has facilities in the Caribbean, Europe, Latin America and the United States.

Natural gas accounts for more than half of Mexico’s electricity generation mix, up from about one-third earlier in the century. U.S. utility firm Sempra Energy is another company investing in LNG infrastructure in the nation, with a $975 million LNG import terminal in Baja California.


Post a Comment