DOE approves expanded LNG shipments

New Fortress Energy has received authorization from the U.S Department of Energy to export up to ~1.4 million tonnes per annum of LNG to non-Free Trade Agreement countries from its Fast LNG 1 (FLNG 1) asset located offshore Altamira, Mexico. (Image: New Fortress Energy)

New Fortress Energy has received authorization from the U.S Department of Energy to export up to ~1.4 million tonnes per annum of LNG to non-Free Trade Agreement countries from its Fast LNG 1 (FLNG 1) asset located offshore Altamira, Mexico.

The authorization is for a term of five years. In combination with the previously received Free Trade Agreement authorization granted by the DOE, the FLNG 1 asset is now able to export LNG to markets and customers worldwide.

The Altamira project recently commenced operations, having exported its first LNG cargo on Aug. 9. NFE Altamira requested a long-term, multi-contract authorization to export U.S.-sourced natural gas to Mexico, and after liquefaction in Mexico, to re-export the liquefied natural gas (LNG). Specifically, NFE Altamira seeks to:

Use approximately 13 Bcf/yr (0.03 Bcf/d) of the U.S.-sourced natural gas in loss during the pretreatment process

Re-export 145 Bcf/yr of the U.S.-sourced natural gas (0.40 Bcf/d) in the form of LNG by vessel to any country with which the United States has entered into a free trade agreement (FTA) requiring national treatment for trade in natural gas (FTA countries), under NGA section 3(c); and any other country with which trade is not prohibited by U.S. law or policy (non-FTA countries), under NGA section 3(a).

“This important authorization cements NFE’s position as a leading global vertically integrated gas to power company and enhances the marketability of our FLNG 1 asset. NFE is now able to freely supply cheaper and cleaner natural gas to underserved markets across the world and further our goal of accelerating the world’s energy transition,” said Wes Edens, Chairman and CEO of New Fortress Energy.

DOE stated that it is still updating its analyses of LNG exports. The Biden administration paused approvals for future LNG export projects as it sought to weigh the economic and environmental effects of new approvals beyond major growth already underway.

That pause is under court review.