New Fortress Energy, a U.S.-based energy company, plans to ship the first LNG cargo to a Mexican port this month. The gas will be used to generate electricity.

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After long delays, the LNG plant located at Altamira off Mexico's Atlantic Coast is expected to complete its commissioning run and pre-production on August 9, following completion of necessary infrastructure and start natural gas processing.

According to the company, the first cargo will be delivered to NFE’s La Paz Terminal in the next few days by the LNG ship Energos princess, which is registered under the Marshall Islands flag.

NFE’s new La Paz facility in Baja California Sur will provide natural gas to other Mexican customers and two power plants.

The floating LNG plant will then undergo scheduled maintenance for several days, before it resumes operations. It is expected to be fully operational by the end of August.

Why it is important

Mexico imports a lot of natural gas from the United States and also has regasification facilities to import LNG. NFE’s Altamira LNG export facility, which produces 1.4 million tons per year and uses feedgas from Mexico or the United States, is the world's first.

Wes Edens said in an official statement that "supplying our customers with LNG from our own production has been our goal for years." Marianna Pararaga, Kirsten Donovan and Kirsten Parraga contributed to this report.

(source: Reuters)