NFE’s Mexico LNG plant producing above capacity, company says

HOUSTON, Jan 28 (Reuters) –

A floating liquefied natural gas (LNG) plant operated by U.S. energy firm New Fortress Energy off Mexico’s coast is producing at 20% above its capacity, and the company has shipped nine cargoes from the facility since August, it said on Tuesday.

NFE has been struggling to secure LNG for its power-generation operations on long-term agreements. The company is trying to raise cash and improve its finances by taking on partners for its primary businesses and selling some assets following its deferral of a shareholder dividend last year.

Its Fast LNG floating project in Altamira, on Mexico’s Atlantic coast, had a rocky start to commercial operations in mid-2024, following delays to receive and plug the infrastructure. The plant turns U.S. natural gas into LNG, which is being sent mainly to Puerto Rico for power generation.

NFE was the only company to receive a non-Free Trade Agreement permit by the administration of former President Joe Biden during a pause to review the economic and climate impact of U.S. LNG exports.

The Altamira facility has been producing at 1.67 million metric tonnes per annum (MTPA), above its 1.4 MTPA nameplate capacity, the company said in an updated presentation to investors.

The company’s refinancing plans are expected to help fund the second phase of the Altamira project, which would start up in 2027, it also said in the presentation. NFE is evaluating proposals to sell its power assets in Jamaica.

(Reporting by Curtis Williams in Houston; Editing by Mark Porter)