New Fortress Energy’s Mexico FLNG Unit Temporarily Shuts Down

New Fortress Energy’s floating liquefied natural gas (FLNG) unit offshore Altamira, Mexico, has temporarily halted operations due to a mechanical issue with its gas turbine. The company expects to resume service by the end of the fourth quarter, though no specific date has been set. NFE is collaborating with the turbine manufacturer to address the problem and restart the FLNG unit as quickly as possible.

The FLNG unit, known as FLNG 1, is the company’s first installation of its proprietary modular liquefaction technology. Located in partnership with Mexico’s state-owned electric utility CFE, the facility liquefies gas transported via the Sur de Texas-Tuxpan pipeline. FLNG 1 began producing LNG in July 2024 and shipped its first cargo the following month, loaded onto the Energos Princess LNG carrier for delivery to NFE’s La Paz terminal.

In addition to the operational setback, NFE previously secured a $700 million loan to support the Mexico FLNG unit and finance the construction of FLNG 2, which will utilize the same technology as FLNG 1. The loan underscores the company’s commitment to expanding its FLNG capabilities in the region.