Report: NFE expects to sign deal for Mexico’s Lakach gas project next week

US energy infrastructure company New Fortress Energy (NFE) expects to sign an agreement next week with the Mexican government for the development of a liquefied natural gas (LNG) project associated with Mexico’s Lakach offshore gas field, Reuters reported.

According to reports, the announcement was made by New Fortress’ Chief Financial Officer (CFO) Christopher Guinta (CFO) during a gas conference in San Antonio.

The construction of the Lakach LNG facility is due for completion in April 2024, Reuters informed citing the company’s CFO.

To remind, earlier this year, NFE signed a deal with Mexican state-owned petroleum company Pemex to jointly develop the Lakach offshore gas field and deploy FLNG solutions.

Lakach is one of the largest non-associated gas fields in the Gulf of Mexico with total original gas in place of 1.1 trillion cubic feet (Tcf). It is located off the coast of Veracruz in southeastern Mexico. Coupled with nearby undeveloped fields Kunah and Piklis, the area has a total resource potential of 3.3 Tcf.

Just recently, NFE also finalised its agreements with Mexican state-owned electric utility Comisión Federal de Electricidad (CFE) as part of a growing strategic alliance.

These included expanding the company’s gas supply to CFE’s power plants, selling New Fortress’ La Paz power plant to CFE and creating the new floating LNG hub off the coast of Altamira.