Pemex, New Fortress halt progress on Lakach project

MEXICO CITY, November 8, 2023 – Mexican NOC Pemex and US gas player New Fortress Energy have terminated a deal to develop the deepwater Lakach project in the Gulf of Mexico, Reuters announced on Tuesday.

According to Reuters’ sources, the service contract signed in November 2022 to begin the project fell through last month due to disagreements in conditions and the set price for sale of gas.

Additional sources said the cost of the project had become too high for North Fortress Energy.

The government approved the USD 1.79-billion project at the beginning of November 2022.

Pemex is in discussion with unnamed companies to progress the development.

The deepwater non-associated gasfield is located 90 kilometres from Port of Veracruz and holds reserves of around 900 bcf (25.5 bcm).

Under the previous plans, an average of 300 mcf (8.5 mcm) per day was expected from the project over a period of 10 years.

The project would potentially be Mexico’s first deepwater gas project.

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