Altamira LNG Outage Halts Mexican Exports and US Feedgas Demand
New Fortress Energy’s (NFE) Altamira LNG facility in Mexico has experienced an unexpected outage, halting operations at the country’s first operational export terminal. The disruption comes as NFE undergoes a broader restructuring of its business, which may have contributed to the temporary shutdown. The facility, located in Altamira, is currently undergoing repairs, with a target restart scheduled for the fourth quarter of this year.
The outage has significantly impacted Mexico’s LNG export volumes, with September exports plummeting to just 0.024 million tonnes (Mt). This decline has widened the basis discount on the Agua Dulce pricing hub, a key indicator for LNG markets in the region. The reduced supply has also affected US feedgas demand, as the outage disrupts the typical flow of natural gas from the US to Mexico for export.
The situation highlights the vulnerabilities in LNG supply chains and the potential ripple effects of facility outages on broader energy markets. While NFE aims to resume operations by the end of the year, the outage underscores the challenges faced by companies in maintaining reliable LNG export capabilities.