New Fortress Energy Inc. (NFE) has announced that it has signed an agreement with Petróleos Mexicanos (Pemex) to form a long-term strategic partnership that benefits from the complementary capabilities of each company, says an article published in LNG Industry.
Export to global markets
The partnership is expressly supported by His Excellency Andrés Manuel López Obrador, the President of Mexico, and by Octavio Romero Oropeza, the CEO of Pemex.
The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.
“We are honoured to enter into this important strategic partnership that strengthens NFE’s commitment to long-term operations in Mexico and demonstrates the tremendous value of our integrated natural gas infrastructure business model,” said Wes Edens, Chairman and CEO of NFE.
“This is the first of a number of offshore development opportunities that leverage what we think is an ideal formula for offshore gas assets around the world – one that combines gas for domestic use with gas for export. We appreciate the continued support of President López Obrador, admire his resolve to deliver reliable energy to the people of Mexico, and value the opportunity to partner with Pemex to enhance global energy security.”
Completing seven offshore
Pursuant to the strategic alliance signed with Pemex, NFE will invest in the continued development of the Lakach field over a two-year period by completing seven offshore wells.
In addition, NFE will deploy to the Lakach field a 1.4 million tpy FLNG unit to liquefy the majority of the produced natural gas.
Remaining natural gas and associated condensate volumes would be utilised by Pemex in Mexico’s onshore domestic market.
NFE and Pemex believe the Lakach field will yield approximately 10 years of production, with the possibility of significantly extending the reserve life if nearby fields are developed.
The transactions are subject to customary terms and conditions and finalisation of related agreements.
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Source: LNG Industry