In March 2022, New Fortress Energy and its Chief Executive Officer Wes Edens launched a proposal to build the first offshore export facility for U.S. liquified natural gas (LNG). The goal is to have the facility up and running within the next 12 months, which is a very short time given the current pressure placed on the liquid natural gas industry.
U.S. liquid natural gas producers are working at near-peak capacity to combat the changes made in the liquid natural gas industry due to Russia’s invasion of Ukraine. Buyers seeking alternative supply opportunities have kept producers working at nearly peak capacity. Liquid natural gas shortages and high demand have pushed prices to new highs on a global scale and have driven interest in new projects to help combat high prices.
Currently, in the United States, there are several liquid natural gas export terminals in development, but the giant plants can take more than five years and billions of dollars to complete. New Fortress’s proposed offshore facility is planned to be completed in less than 12 months. CEO Wes Edens did not disclose the estimated cost of the facility or plans to finance it. Wes Edens did disclose the unique midsize proposed offshore terminal would produce about 2.8 million tones per annum (MTPA) less than one-third of onshore plants.
New Fortress prides itself in designing a plant that will utilize a modular processing gear set atop a drilling rig that will serve as a fuel delivery site. Currently, they are awaiting U.S. regulatory approvals to begin drilling.