New Fortress Energy (NFE) has filed applications with the US Maritime Administration, the US Coast Guard, and US Department of Energy to request all necessary permits and regulatory approvals to site, construct, and operate a new offshore natural gas liquefaction terminal off the coast of Louisiana with the capacity to export 2.8 mtpa of liquefied natural gas (LNG).
The project will be in federal waters 16 miles off the southeast coast of Grand Isle, Louisiana, and will leverage existing infrastructure to access gas supplies. According to NFE, procurement of all long-lead materials is complete and modular assembly of equipment is under way. Subject to the receipt of all required permits and approvals, NFE targets beginning operations in the first quarter of 2023.
“This announcement demonstrates the flexibility, efficiency, and significance of our innovative Fast LNG solution to bring more affordable, reliable, and cleaner fuels to customers around the world,” said Wes Edens, chairman and chief executive of New Fortress. “This is a big step in the growth of our Fast LNG portfolio, which will include both tolling liquefaction for high credit worthy partners like Eni as well as market volumes from our merchant assets like these. With rapid deployment, this project can play a significant role in supporting our nation’s commitment to our European allies and their energy security as well as support our efforts to reduce emissions and energy poverty around the world.”
New Fortress’s Fast LNG liquefaction design pairs the latest advancements in modular, midsize liquefaction technology with jack-up rigs or similar offshore infrastructure aimed at lowering cost and speeding up the deployment schedule.
With the recent announcement by the US and European Commission to ensure additional LNG volumes for the EU, New Fortress said LNG production off the coast of Louisiana can support the European Union’s goal to end its dependence on Russian energy supplies.
Earlier this month, New Fortress signed a deal with Italian energy giant Eni to deploy its Fast LNG floating liquefaction technology off the coast of Congo. The system is expected to produce up to 1.4 mtpa of LNG and begin production during the second quarter of 2023.
