New Fortress Energy (NASDAQ:NFE) and state energy company Pemex have terminated a deal to develop what could have been Mexico’s first deepwater natural gas project, Reuters reported Tuesday.
Pemex wants to continue with the development of the Lakach gas field in the Gulf of Mexico and is in talks with other companies, according to the report, which did not name the companies.
The Lakach field holds ~900B cf of natural gas, but rising costs and disagreements over how to develop it have hurt the venture, which already has cost more than $1B.
Pemex had planned to sell 190M cf/day of gas to New Fortress (NFE) and supply another 110M cf/day to the domestic Mexican market; production was supposed to start in Q1 2024.
Last week, New Fortress (NFE) reportedly told the U.S. Department of Energy it had begun evaluating a fresh LNG onshore project in the Gulf state of Tamaulipas, and will soon begin operating a floating LNG export terminal off the Tamaulipas port of Altamira.
