Project highlight: Mexico’s Fast LNG 1

Mexico

Fast LNG 1 is the latest addition to Mexico’s LNG infrastructure and is the country’s first floating LNG export facility.

Located offshore Altamira, the project aims to monetise natural gas from the Sur de Texas-Tuxpan pipeline, with exports authorised by both the US Department of Energy and Mexico’s Ministry of Energy. Developed by New Fortress Energy in partnership with the state-owned Federal Electricity Commission (the CFE), the facility reflects Mexico’s broader objective to scale up LNG exports. The deployment of a modular, offshore design allows for quicker project execution and the potential to access stranded or flared gas sources.

SPECIFICATIONS: Fast LNG 1 has a production capacity of 1.4 million tonnes per year. The project consists of three repurposed jack-up rigs, each performing a specific function: Pioneer I handles gas treatment, Pioneer II performs liquefaction, and Pioneer III provides utilities, accommodation, and power generation. LNG is stored in a dedicated floating storage unit before being transferred to LNG carriers for export.

KEY PLAYERS: The project was led by New Fortress Energy, which also operates the facility. It was developed in partnership with the CFE. The collaboration combined New Fortress Energy’s modular LNG technology with the CFE’s role as a national energy operator.

INVESTMENT: Fast LNG 1 represents an investment of approximately USD 2 billion. This figure covers the modular build, offshore installation, and commissioning of the three-rig system and associated infrastructure.

TECHNOLOGIES: Fast LNG 1 uses modular liquefaction technology installed on jack-up rigs, a format not previously applied in Mexico. The facility incorporates cryogenic pumps for LNG transfer and a subsea pipeline system that brings natural gas from around 2 kilometres offshore to the processing platform. This configuration enables deployment within shorter timeframes than conventional land-based facilities.

TIMELINE: The project took around three years to complete. Construction activities followed a final investment decision and progressed through several stages, including installation of subsea pipelines and commissioning of each jack-up unit. First gas was delivered to the platform in November 2023. The first LNG was produced in July 2024, and the first partial LNG cargo was shipped in September 2024.

ENVIRONMENTAL BENEFITS: The offshore and modular design enables utilisation of gas that might otherwise be flared, contributing to emission reductions. While specific carbon figures have not been disclosed, the ability to monetise stranded gas reserves is presented as an environmental and economic advantage.

OTHER BENEFITS: The floating nature of the facility allows it to be relocated or replicated elsewhere, offering deployment flexibility. The setup supports the development of LNG infrastructure with reduced footprint, and potentially supports local employment and auxiliary services during the construction and operational phases.

MARKET OUTLOOK: Fast LNG 1 enters service at a time when Mexico is expanding its LNG export capacity. Projects under construction or in planning – including Energia Costa Azul and Saguaro Energia, among others – are expected to add nearly 4.5 bcf (127.4 mcm) per day of export capacity. New Fortress Energy holds an export permit from the Ministry of Energy for up to 7.8 million tonnes of LNG through April 2028 and plans further floating LNG developments to establish an eastern Mexican LNG hub.

Photo courtesy of New Fortress Energy

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