New Fortress Sanctions "Fast LNG" Unit

US-based New Fortress Energy (NFE) said on March 15 it had taken a final investment decision on a mobile LNG liquefaction facility that could be in service within 20 months.

The company said it had issued a limited notice to proceed with its so-called Fast LNG liquefaction facility to services firms Fluor, Chart Industries Inc. and Baker Hughes for the construction of a liquefaction facility with a design capacity of 1.4mn mt/year.

“The ‘Fast LNG’ design pairs the latest advancements in modular, midsize liquefaction technology with jack up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than today’s floating liquefaction vessels,” the company explained in a statement. “A permanently moored FSU will serve as an LNG storage facility alongside the floating liquefaction infrastructure, which can be deployed anywhere there is abundant and stranded natural gas.”

NFE Chairman and CEO Wes Edens said the new facility was expected to produce LNG at around US$3-$4/mn Btu. The unit is expected to be in service by 2022.

Unlike piped gas, LNG offers more flexibility in terms of potential customers, though the infrastructure necessary to accommodate its super-cooled form can be costly.

“This technology can be installed quickly and cheaply to access stranded, low-cost natural gas at a fixed price to meet the global demand for more affordable, reliable and cleaner energy,” Edens said.

The Nasdaq-listed company reported net income for the fourth quarter of US$170,000, versus a $36.4mn loss in the previous quarter. Revenues grew to $145.7mn from $136.9mn.