New Fortress Energy (NFE) has entered into an agreement with Mexico’s Comisión Federal de Electricidad (CFE) to expand and extend NFE’s supply of natural gas to multiple CFE power generation facilities in Baja California Sur, and to create a new LNG hub off the coast of Altamira, Tamaulipas, with CFE supplying the requisite feedgas to two NFE FLNG units using CFE’s existing pipeline capacity.
“We are pleased to expand our strategic alliance with CFE, which will enhance clean energy security for Mexico and enable the construction of a new LNG hub off the coast of Altamira,” said Wes Edens, Chairman and CEO of NFE. “We appreciate the continued support of President López Obrador and value the opportunity to demonstrate our commitment to producing cleaner, cheaper energy for Mexico and the world.”
In July 2021, NFE commenced commercial operations of an LNG regasification terminal in the port of Pichilingue, La Paz, Baja California Sur. The terminal supplies natural gas to CFE’s generation facilities in the region.
Pursuant to the new agreement, CFE and NFE will extend the term of NFE’s gas supply agreement to CFE’s power generation facilities in the region and increase the volume of delivered natural gas.
Additionally, NFE has agreed to sell its own 135 MW power plant in La Paz to CFE. The addition of this power plant is expected to enhance CFE’s system reliability, reduce power costs and complement steps CFE is taking to expand the use of renewable energy resources and lower emissions in the region.
These transactions are subject to customary terms and conditions and finalisation of related agreements.
