US natural gas firm New Fortress Energy (NFE) is set to begin onshore construction of its second liquefied natural gas (LNG) plant at the Mexican port of Altamira by mid-2025.
“We currently expect onshore construction to commence this summer and are working closely with CFE on that process. We will provide additional updates as permits are received,” CFO Chris Guinta said during the company’s Q4 earnings call.
NFE is developing the US$1.1 billion plant in partnership with Mexico’s state utility Comisión Federal de Electricidad (CFE). To date, the company has invested US$625 million, primarily in procuring liquefaction modules. Construction of these modules is now over 50% complete, Guinta added.
Progress and Construction Timeline
Texas-based contractor Kiewit is building the modules, which will be shipped to Altamira in 2026.
Expanding LNG Operations at Altamira
NFE’s first LNG plant at Altamira, FLNG1, began operations in July 2024. The floating LNG facility has a production capacity of 1.4 million tons per year (Mt/y) and has already shipped 12 cargoes.
For its second plant, FLNG2, NFE is converting an onshore import terminal originally built by Shell into an LNG export terminal with the same 1.4Mt/y capacity. To accelerate the project, NFE is using identical equipment from the same manufacturers as FLNG1.
Investing in Local Workforce
At FLNG1, NFE has been increasing the proportion of Mexican operators, with local workers now making up about 50% of the workforce.
“We anticipate this figure will rise to 80% Mexican workforce over the course of 2025, reinforcing our long-term investment in the region,” Guinta noted.