With first FLNG unit online, US player gets hold of $700 million loan to build second one

U.S. energy infrastructure player New Fortress Energy (NFE) has secured a $700 million loan to cover its construction costs for a second floating liquefied natural gas (FLNG) unit, which will join the first one at its LNG terminal in Altamira, Mexico.

Only days after disclosing the first LNG production from its initial 1.4 million tons per annum (mtpa) Fast LNG installation, FLNG 1, which is made up of three repurposed jack-up rigs off the coast of Altamira, New Fortress Energy closed its previously announced $700 million loan for its second unit, FLNG 2.

Wes Edens, Chairman and CEO of New Fortress Energy, commented: “Our FLNG complex is advancing at a rapid pace as we have now produced LNG at our first unit, and fully financed our second. These are large infrastructure projects that add considerable financial and operational value to our company and we are thrilled with the progress to date.”

While FLNG 1 expects to deliver its first cargo in August and enter full production afterward, the new loan will fully fund the construction of FLNG 2, which will also be developed in partnership with Comisión Federal de Electricidad (CFE), Mexico’s state-owned electric utility, just like the previous one was.

Taking advantage of the extensive in-place terminal infrastructure onshore in Altamira, the new liquefaction unit will incorporate the same proprietary modular technology as FLNG 1, with construction works scheduled to be wrapped up in the first half of 2026.

The export permit for the Altamira Fast LNG facility from Mexico’s Ministry of Energy (SENER) enables the U.S. company to export up to 7.8 million metric tons through April 2028, following the authorization from the U.S. Department of Energy (DOE) for export of United States-sourced LNG to Mexico and other FTA countries.

According to NFE, the project, which will liquefy gas supplied by the Sur de Texas-Tuxpan pipeline, will help create a new FLNG hub off the east coast of Mexico. New Fortress Energy intends to deploy multiple FLNG units of 1.4 mtpa to supply low-cost, clean LNG to its downstream terminal customers.

The U.S. player’s recent divestment of Miami LNG follows the sale of its 20% equity interest in Energos Infrastructure. A few months ago, the company started operations at its LNG import terminal in Santa Catarina, Brazil, following the arrival of a floating storage and regasification unit (FSRU).