New Fortress Finalizes Deal to Develop Lakach Gas Project in Mexico

(Reuters) — New Fortress Energy said on Tuesday it had finalized agreements with Mexican state oil company Pemex for the development of an LNG project associated with the country's Lakach offshore gas field.

Last month, Mexico's oil regulator approved a plan for developing the once-abandoned natural gas project that is believed to hold up to 937 billion cubic feet of gas reserves. Cost pressures had put the project on hold for six years.

New Fortress will develop and operate an integrated upstream project and a natural gas liquefaction plant off the coast of Veracruz in Southeastern Mexico.

It will complete seven offshore wells over a two-year period, the company said without divulging any financial details of the deal.

Mexico expects gas production at Lakach to begin in the first quarter of 2024.

New fortress and Pemex believe the Lakach field will yield about 10 years of production.

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