US-listed New Fortress Energy has applied for permits to site one of its planned floating LNG (FLNG) production units in the US Gulf as it joins the rush to supply Europe with product to replace Russian gas.
New Fortress said it has filed applications with the US Maritime Administration, the US Coast Guard and US Department of Energy for the required permits and regulatory approvals to site, construct and operate a new offshore LNG liquefaction terminal off the coast of Louisiana.
The FLNG facility, which would be sited around 16 miles off the southeast coast of Grand Isle, would be capable of producing around 2.8 million tonnes per annum of LNG.
Subject to receiving all the necessary permits and approvals, New Fortress is aiming to put the unit into operation in the first quarter of 2023.
New Fortress is using its ‘Fast LNG’ concept for this unit under which it is converting jack-up rigs and drillships into quick start-up FLNG units.
It said the procurement of all long-lead materials is complete and modular assembly of equipment is underway.
Company chairman and chief executive Wes Edens said: “This announcement demonstrates the flexibility, efficiency and significance of our innovative Fast LNG solution to bring more affordable, reliable and cleaner fuels to customers around the world,.”
Edens continued: “This is a big step in the growth of our Fast LNG portfolio, which will include both tolling liquefaction for high creditworthy partners like ENI as well as market volumes from our merchant assets like these.
“With rapid deployment, this project can play a significant role in supporting our nation’s commitment to our European allies and their energy security as well as support our efforts to reduce emissions and energy poverty around the world.”
New Fortress highlighted the recent announcement by the US that it would supply Europe with 15 billion cubic metres of LNG by the end of this year as European buyers try to shift away from Russian gas.
“LNG production off the coast of Louisiana can support the EU’s goal to end its dependence on Russian fossil fuels as well as NFE’s growing business around the world of reducing emissions and pollution by providing a cleaner, affordable and reliable alternative to oil-based fuels,” the company said.
New Fortress has previously announced that it is working with Italy's Eni to use one of its planned FLNG units for a project in the Congo. It has also hooked up with Mauritania as another possible location for an FLNG project.
