The first LNG on jack ups started production

Source: Image courtesy of Maersk

Discussion Points on New Fortress Energy’s Fast LNG (Jack-Up FLNG) Project(First LNG announced July 19, 2024, 9:25 AM EDT)

Q1. Price

Questions remain regarding the overall cost structure of New Fortress Energy’s Fast LNG project offshore Altamira, Mexico is the implied liquefaction cost approximately USD 1,400/ton? If so, the so-called “conversion” of legacy jack-up rigs appears to nearly double the cost compared with a new-build barge FLNG solution.

Alternatively, does the frequently cited USD 2 billion figure include upstream facilities, marine infrastructure, gas handling systems, or storage and logistics assets, rather than liquefaction alone? Another contributing factor may be the complexity and cost of offshore integration, including installation, marine works, and regulatory compliance.

By comparison, barge-based FLNG solutions generally offer greater economic liquidity, as they can be de-mobilised and redeployed. The Tango FLNG project—relocated from Argentina to Africa—is a recent example of this operational flexibility.

Q2. Schedule

The reported development timeline appears to be approximately three years (2021–2024). This raises the question of whether the schedule is, in practice, similar to barge FLNG solutions, rather than materially faster.

In most LNG projects, the critical schedule bottleneck is the long-lead items (LLIs)—notably compressors and refrigeration equipment—rather than the hull or structural platform. From this standpoint, a new-build barge may present lower technical risk, improved durability and structural integrity, and a longer design life.

In addition, for barge-based FLNG concepts, commissioning—including hot commissioning—can often be completed at the shipyard, potentially reducing offshore commissioning risk and duration.

Summary

US LNG firm New Fortress Energy announced First LNG from its initial Fast LNG asset offshore Altamira, Mexico, on July 19, 2024, at 9:25 AM EDT. The company describes the project as the fastest large-scale LNG project ever developed, enabled by a proprietary design combining modular liquefaction technology with converted jack-up rigs.

While this milestone is significant, questions remain as to whether the cost and schedule advantages materially outperform barge-based FLNG solutions, particularly when considering lifecycle flexibility, redeployment potential, offshore integration risk, and long-term asset integrity.

Industry peers are encouraged to share their views.

Sources

New Fortress Energy – Achieves First LNG for its Fast LNG Asset (July 19, 2024, 9:25 AM EDT):https://ir.newfortressenergy.com/news-releases/news-release-details/new-fortress-energy-achieves-first-lng-its-fast-lng-asset

Maritime Executive – New Fortress Energy Turns Maersk Jack-Up Rigs Into Offshore LNG Plants:https://maritime-executive.com/article/new-fortress-energy-turns-maersk-jack-up-rigs-into-offshore-lng-plants