NFE Announces First LNG in Days and First Cargo in July
New Fortress Energy (NFE) announced that its first Fast LNG unit, located offshore Altamira, Mexico, will begin producing liquefied natural gas (LNG) within the next 10 days, with the first cargo delivery expected in July. The company has completed all necessary pre-commissioning activities and is now ready to start liquefaction operations. NFE aims to address energy poverty and support the global transition to more reliable, affordable, and clean energy through its extensive network of natural gas and LNG infrastructure.
- New Fortress Energy (NFE) will start LNG production in the next 10 days.
- First LNG cargo delivery is expected in July.
- Completion of all pre-commissioning activities for the Fast LNG unit.
- NFE's extensive network supports global energy security and economic growth.
- No specific revenue or financial metrics provided in the announcement.
- Potential operational risks associated with the new Fast LNG unit.
Insights
New Fortress Energy Inc. (NFE) is set to make significant strides with the announcement of its first liquefied natural gas (LNG) production in the coming days and the first cargo delivery expected in July. This milestone comes after the completion of essential pre-commissioning activities for its Fast LNG unit located offshore Altamira, Mexico.
Short-term, the announcement should bolster investor confidence, potentially driving the stock price upward as the market reacts to the immediate revenue prospects. Long-term, consistent production and delivery of LNG could lead to stable cash flows and profitability, which are essential metrics for valuation. However, investors should monitor global LNG demand, price fluctuations and regulatory considerations that could affect NFE's profitability.
From a market perspective, the commencement of LNG production by NFE comes at a strategically beneficial time given the growing global demand for LNG. This demand is driven by the global transition to cleaner energy sources and the geopolitical emphasis on energy security. The location of the Fast LNG unit offshore Altamira, Mexico, positions NFE advantageously to cater to both North American and global markets. The successful initiation of LNG production can help NFE capture market share and establish itself as a reliable supplier in the LNG market.
Potential benefits include enhanced market credibility and the ability to leverage existing logistics and shipping infrastructure to optimize delivery schedules. However, investors should be aware of the competitive landscape in the LNG sector, which includes established players with significant resources. Additionally, market pricing for LNG can be volatile, influenced by factors such as seasonal demand, geopolitical events and long-term contracts.
The energy sector is closely watching NFE’s progress, as the successful launch of the Fast LNG unit can demonstrate the viability of modular, fast-track LNG solutions. These solutions are designed to be more flexible and quicker to deploy compared to traditional onshore LNG projects, thereby addressing the demand for scalable and adaptable LNG infrastructure. The ability to deliver the first cargo in July underscores the efficiency and potentially lower cost structure of Fast LNG units.
For stakeholders, this development is a positive indicator of the company’s capability to innovate within the industry. It could also spark interest in similar projects, thereby influencing industry trends and investment decisions. However, the long-term success will depend on operational stability, consistent production levels and adherence to environmental regulations. The environmental stewardship aspect, as emphasized by NFE, will also be critical in aligning with global sustainability goals and securing investor confidence.
NFE today updated the timing of its First LNG expectation for its first Fast LNG unit located offshore
As of today, the work necessary to begin operations is complete and the Company has also completed the full remainder of pre-commissioning activities. The Company now expects to produce LNG in the next 10 days, and then expects to be able to deliver its First Cargo in July.
About New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The Company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the Company’s assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain statements and information that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “can,” “could,” “should,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “believes,” “schedules,” “progress,” “targets,” “budgets,” “outlook,” “trends,” “forecasts,” “projects,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” or the negative version of those words or other comparable words. Forward looking statements include: the successful timing of first LNG and first cargo at the Company’s first Fast LNG liquefaction facility. These forward-looking statements are necessarily estimates based upon current information and involve a number of risks, uncertainties and other factors, many of which are outside of the Company’s control. Actual results or events may differ materially from the results anticipated in these forward-looking statements. Specific factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to: risks related to the timing and amounts of first LNG and first cargo at the Company’s first Fast LNG liquefaction facility the Company’s first Fast LNG liquefaction facility and failure of our third-party contractors, equipment manufacturers, suppliers and operators to perform their obligations for the operation of the Company’s first Fast LNG liquefaction facility. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the Company’s forward-looking statements. Other known or unpredictable factors could also have material adverse effects on future results. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no duty to update or revise any forward-looking statements, even though our situation may change in the future or we may become aware of new or updated information relating to such forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in New Fortress Energy Inc.’s annual and quarterly reports filed with the Securities and Exchange Commission, which could cause its actual results to differ materially from those contained in any forward-looking statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240614857836/en/
Investor Relations:
Chance Pipitone
ir@newfortressenergy.com
Media Relations:
Ben Porritt
press@newfortressenergy.com
(516) 268-7403
Source: New Fortress Energy Inc.
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