NFE Mexico LNG plant is producing at capacity, the company claims

The company said that it has shipped nine loads from its floating LNG plant off the coast of Mexico, which is operated by U.S. firm New Fortress Energy. Its production rate is 20% higher than its capacity.

NFE is struggling to find LNG on long-term contracts for its power generation operations. The company has been trying to improve its finances and raise cash by taking on partners in its primary businesses. It also sold some assets after deferring a dividend for shareholders last year.

The Fast LNG floating project, located in Altamira on the Mexican Atlantic coast, has had a rough start in commercial operations. This was due to delays in receiving and plugging in the infrastructure. The plant converts U.S. Natural Gas into LNG which is mainly sent to Puerto Rico as power generation.

NFE was one of only two companies to be granted a non-Free Trade Agreement (Non-FTA) permit by the former president Joe Biden's administration during a pause in order to examine the economic and environmental impact of U.S. LNG Exports.

In an updated investor presentation, the company stated that Altamira has been producing 1.67 million metric tons per year (MTPA), which is above its 1.4 MTPA capacity.

In its presentation, the company also stated that the refinancing plan is expected to fund the second phase, or the Altamira Project, which will begin in 2027. NFE is currently evaluating proposals for selling its power assets in Jamaica.

(source: Reuters)