NFE's November 2023 challenges

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#1
New Fortress Energy (NFE) have fallen behind in their plans for “FLNG” which they claimed is Fast LNG rather than the traditionally accepted Floating Liquefied/Liquefaction of Natural Gas. Fast LNG #1 was originally supposed to come online in H1 2023 (March - May 2023). Project slipped to July 2023, then Sept 2023, and now, to Nov 2023

#2
In late 2020, NFE acquired Golar Hygo (Golar’s projects in Brazil). NFE also acquired Golar LNG Partners (GMLP) assets, mostly Floating Storage & Regasification Units (FSRUs). One of those FSRUs (Golar Winter) was working in Brazil and servicing a Petrobras contract. The FSRU, now renamed Energos Winter, has been selected to be the FSRU that serves Santa Catarina.

The really funny thing is, Hygo had two newer LNG tankers that were supposed to be converted to FSRUs and be utilized in Brazil. But, one of those LNG tankers is to be deployed in Fast LNG #1.

The second project should be relatively straightforward. I mean, one is basically moving an FSRU from one location in Brazil to another location (also in Brazil).

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Since NFE acquired the Golar Hygo & Golar LNG Partners (GMLP) assets about three years ago, the company has taken multiple steps to monetize on the assets, rather than develop or maintain the project.
Among them

  1. Selling an electricity generating asset in Brazil
  2. Bundling 8 GMLP and 3 Golar Hygo assets together, and selling them to Energos Infrastructure (NFE hold a 20% stake)
  3. NFE had a minority stake in FLNG Hilli. The company sold the stake back to Golar in exchange for cash & NFE shares
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11/07
Uh-oh! More negative developments.
Pemex cancels deal with NFE to develop offshore Lakach field

Fast LNG has been NFE’s proposed solution to tap Lakach field. But Fast LNG #1 could not be the go-to platform, as the first Fast LNG was built around jack-up rigs (which are shallow water infrastructure). Lakach field’s water depth is in 4 000 ft depth.

To date, NFE has not been able to get Fast LNG #1 into production. That has already led to a domino effect, resulting in Fast LNG #2 and Fast LNG #3 pushed further out, and the plans modified (no longer ocean based, but land based solutions).

Things not looking good for NFE right now.