LNG Import Terminal Set for Baja

New Fortress Energy’s recent award to build a new LNG import terminal in Baja California Sur, Mexico will offer the isolated region a clean and low-cost energy solution, the company said August 24.

“This development and our investment in Mexico will bring clean and affordable energy to help grow the economy and reduce harmful emissions,” New Fortress Energy founder Wes Edens said in a statement.

The long-term contract to develop, build and operate the LNG terminal at the Port of Pichilingue was awarded to New York City-based New Fortress on July 19 following a competitive public bid process by the Administracion Portuaria Integral de Baja California Sur (APIBCS).

The terminal, slated to be completed and online in 2020, will introduce natural gas into the state of Baja California Sur, and offer benefits to the local environment and competitiveness in the energy sector.

Use of natural gas in Baja California Sur is estimated to contribute to the reduction of CO2 emissions by 30%, and S0x emissions by 70%, New Fortress said. Additionally, introduction of the molecules in the state is expected to attract new industries and businesses, generate jobs and spur regional growth.

Investments in the terminal are estimated at pesos 3.6bn (about US$184mn), according to an August 15 article on the website ElSudCaliforniano.com.

“With this project it will be possible to convert ships, trucks, taxis, and all types of internal combustion vehicles as well as CFE plants into users of liquefied natural gas,” Baja California Sur governor Carlos Mendoza Davis said in the article. “Another additional benefit is a 50% reduction in the cost of fuel.”