NFE and Eni Congo agree to deploy Fast LNG solution in the Republic of Congo
February 28, 2022
In the news
NEW YORK--(BUSINESS WIRE)--New Fortress Energy Inc. (NASDAQ: NFE) (together with its affiliates, “NFE”) announced today the execution of a Heads of Agreement (HoA) with Eni S.p.A. fully owned subsidiary, Eni Congo (together with its affiliates, “Eni”) for the deployment of NFE’s Fast LNG liquefaction technology off the coast of the Republic of the Congo for a period of 20 years.
NFE will deploy its innovative “Fast LNG” facility to produce up to 1.4 million metric tons per year of LNG in the associated gas fields off the coast of the Republic of the Congo. The HoA provides a frame for negotiating a long-term tolling agreement between NFE and Eni for the full capacity of the facility and for the purchase by NFE of approximately 1.2 million gallons of LNG per day pursuant to a 20-year FOB sales and purchase agreement. The production is expected to start in Q2 of 2023.
“This landmark partnership is a major milestone for our Fast LNG business. Eni is a world-class organization and the perfect partner for the first Fast LNG unit,” said Wes Edens, Chairman and CEO of NFE. “With production beginning next year, we believe that this is just the first of many deployments of this game-changing technology around the world.”
“The customers at our downstream terminals need access to affordable, clean and reliable energy. Our portfolio of Fast LNG facilities allows us to deploy offshore infrastructure more quickly and affordably, adds low-cost LNG to our existing portfolio and diversifies our business,” continued Edens. “This is a great step to support our rapidly growing customer base as we play a key role in the global energy transition.”
NFE’s “Fast LNG” liquefaction design pairs the latest advancements in modular, midsize liquefaction technology with jack up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than today’s floating liquefaction vessels.
Under the HOA, the finalization and execution of definitive agreements remains subject to negotiation and a set of conditions, which are expected to be completed and satisfied by the end of March 2022. NFE is in advanced discussions for the deployment of this technology in several other markets around the world, including offshore United States.
About New Fortress Energy
New Fortress Energy is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy. The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.