New Fortress slashes 2025 'Fast LNG' production

Market: Natural gas
01/03/23

New Fortress Energy has severely cut its forecast LNG output from the development of new Fast LNG (FLNG) liquefaction units, expecting just one unit to be operational from mid-2023 to 2025 compared with around five previously.

The firm expected output from FLNG projects under development to rise to 63 trillion Btu/yr (1.2mn t/yr) in 2024-25, up from 29 trillion Btu (555,400t) in 2023. This is well down from previous estimates for an increase to 350 trillion Btu (6.7mn t) for 2025 in the firm's third-quarter 2022 results published in November (see table).

The latest figures suggest that only one 70 trillion Btu/yr (1.4mn t/yr) FLNG unit would be operational from mid-2023 to 2025, which is likely to be located at Mexico's Altamira, where New Fortress expects first LNG in July and the start of commercial operations in August.

The firm previously said in November that it expected the first unit at its planned FLNG project in the US' Louisiana to begin operations in late 2023. It then anticipated a further FLNG unit to be deployed at the site by early 2024. And New Fortress has previously said that it planned to add a third unit in Louisiana.

Supply from other sources was revised upwards, but only by 7 trillion Btu (134,000 t) to 121 trillion Btu (2.3mn t) for 2024-25. This leaves expected total liquefaction output from New Fortress 17 trillion Btu (326,000 t) lower than previously expected in 2023, 152 trillion Btu (2.9mn t) less in 2024 and down by 280 trillion Btu (5.4mn t) for 2025.

New Fortress was not immediately available for comment.

By Auguste Breteau

New Fortress expected liquefaction, 2023-25			trillion Btu
	2023	2024	2025
Nov '22 output forecast
Current supply	114	114	114
FLNG volumes	47	222	350
Total	161	336	464
New output forecast
Current supply	114	121	121
FLNG volumes	29	63	63
Total	144	184	184
Difference
Current supply	0	7	7
FLNG volumes	-18	-159	-287
Total	-17	-152	-280
— New Fortress Energy

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