New Fortress Energy to Deploy FLNG Unit to Develop Mexico's Deepwater Gas Field

After Mexico's Pemex said Sunday it had signed a deal with the U.S. firm New Fortress Energy (NFE) to develop the Lakach deepwater gas/condensate field, the confirmation also came from NFE, which shared more info on the development plan.

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. The field, sitting at a water depth of a thousand meters, is located off the coast of Veracruz.

Under 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 MTPA FLNG unit to liquefy the majority of the produced natural gas. 

The remaining natural gas and associated condensate volumes would be used by Pemex in Mexico’s onshore domestic market. 

"NFE and Pemex believe the Lakach field will yield approximately ten years of production, with the possibility of significantly extending the reserve life if nearby fields are developed," NFE said.

“We are honored 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....

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