New Fortress Energy expanding LNG assets

New York City-based New Fortress Energy is in full swing with the development of new natural gas liquefaction and LNG import facilities. 

In its filing to the United States Securities and Exchange Commission, the company said it is currently developing two liquefaction facilities in Pennsylvania and plans to develop five to ten additional liquefaction facilities over the next five years.

“We expect to construct each liquefaction facility for a total cost (including ancillary logistics infrastructure) of between $750 to $850 million,” the company said in its filing noting that it believes that building smaller facilities and optimizing efficiencies will allow a faster construction.

Each of the liquefaction facilities is anticipated to produce approximately 3.6 million gallons of LNG (298,000 MMBtu) per day, or 2.15 mtpa of LNG.

“We are in advanced stages of the design, development and permitting for our first Pennsylvania facility, and we expect it to be substantially complete in the fourth quarter of 2020,” the company said.

The plant is expected to have a liquefaction capacity of approximately 3.6 million gallons of LNG per day. New Fortress Energy has already entered into a 15-year contract to acquire all of the feedgas needed to operate the plant.

The company said it is also in the process of developing a second facility in Pennsylvania and expects to begin commercial operations in the first quarter of 2021.

“We expect to have liquefaction capacity of approximately 7.3 million gallons of LNG per day after the completion of our Pennsylvania facilities,” the filing reads.

The company already has one liquefaction facility in operation, the Miami plant with a liquefaction capacity of approximately 100,000 gallons of LNG per year.

New Fortress Energy also has two import facilities in operation with three more under development.

The Montego Bay and Old Harbour facilities in Jamaica are substantially complete. The Montego Bay facility commenced commercial operations in October 2016, and is capable of processing up to 740,000 gallons of LNG per day supplying natural gas to the 145 MW gas-fired power plant operated by Jamaican Public Service Company (JPS).

The second facility in Old Harbour is substantially complete expected to commence commercial operations in the first quarter of 2019.

It is capable of processing approximately 6 million gallons of LNG per day and it is expected to supply gas to a new 190 MW Old Harbour power plant) operated by South Jamaica Power Company (JPC) under a long-term take-or-pay deal for 350,000 gallons of LNG per day.

New Fortress Energy also expects the Old Harbour terminal to supply gas to a new 94 MW power plant it is constructing, and approximately 269,000 gallons of LNG per day to the alumina refinery operated by Jamalco, an entity owned by the government of Jamaica with a focus on bauxite mining and alumina production in Jamaica.

Additionally, the company has three more similar facilities under construction in San Juan, Puerto Rico, La Paz, Baja California Sur, Mexico and Shannon, Ireland.