NFE, Pemex Partner to Develop Mexico’s Lakach Gas Field
New Fortress Energy Inc. has signed an agreement with Petróleos Mexicanos (Pemex) to jointly develop the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.
The partnership is expressly supported by His Excellency Andrés Manuel López Obrador, the President of Mexico, and by Octavio Romero Oropeza, the CEO of Pemex.
“This is the first of a number of offshore development opportunities that leverage what we think is an ideal formula for offshore gas assets around the world — one that combines gas for domestic use with gas for export,” Wes Edens, Chairman and CEO of NFE, said.
Pursuant to the strategic alliance signed with Pemex, NFE will invest in the continued development of the Lakach field over a two-year period by completing seven offshore wells. In addition, NFE will deploy to the Lakach field a 1.4 MTPA FLNG unit to liquefy the majority of the produced natural gas.
Remaining natural gas and associated condensate volumes would be utilized by Pemex in Mexico’s onshore domestic market. NFE and Pemex believe the Lakach field will yield approximately ten years of production, with the possibility of significantly extending the reserve life if nearby fields are developed.
Pemex discovered the Lakach deepwater natural gas field in 2007 and subsequently carried out significant exploration and development activities. Lakach is one of the largest non-associated gas fields in the Gulf of Mexico with total original gas in place of 1.1 trillion cubic feet (Tcf) and is located approximately 70 km (43 miles) off the coast of Veracruz in southeastern Mexico. Coupled with nearby undeveloped fields Kunah and Piklis, the area has a total resource potential of 3.3 Tcf and comprises one of the most significant undeveloped offshore gas resources in the Western hemisphere.
The transactions described in this press release are subject to customary terms and conditions and finalization of related agreements.
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