New Fortress Energy's Mexico FLNG Unit Shuts Down Due to Mechanical Issue

New Fortress Energy's floating liquefied natural gas (FLNG) unit in Mexico has temporarily halted operations due to a mechanical issue with its gas turbine. The company announced that it is collaborating with the turbine manufacturer to address the problem and aims to restart the facility before the end of the fourth quarter.

The FLNG unit, known as FLNG 1, is located offshore Altamira and operates in partnership with Mexico's state-owned electric utility CFE. It uses gas supplied through the Sur de Texas-Tuxpan pipeline and has a capacity of 1.4 million tonnes per annum. The unit began producing its first LNG in July 2024, with the inaugural shipment loaded onto the Energos Princess LNG carrier the following month, destined for NFE's La Paz terminal.

In addition to the ongoing operations, New Fortress Energy secured a $700 million loan for the Mexico FLNG unit. The financing is also intended to fully fund the construction of FLNG 2, which is expected to utilize the same proprietary modular liquefaction technology as FLNG 1.