Mexico's LNG Export Capacity Grows: The Week in Energy

New Fortress Energy (NFE) has completed its first cargo load and sail operation at its floating liquefied natural gas (FLNG) unit off the coast of Altamira, Mexico. This milestone marks the initial shipment from NFE’s Fast LNG 1 project, an offshore development situated in the Gulf of Mexico

Ready? Here is the weekly roundup!

NFE Completes First Cargo Load, Sail Operation at Altamira
The Fast LNG 1 project, which integrates a modular design with an offshore facility, represents a significant advancement in offshore gas production. NFE announced on Aug. 9 that it had achieved this first LNG cargo load, a pivotal moment for the company as it begins supplying LNG directly to its customers. The project, comprising three repurposed jack-up rigs, has a production capacity of 1.4MMtpa.

CFE Allocates MX$2.903 Billion to Grid Upkeep
CFE will allocate approximately MX$2.903 billion (US$170.76 million) between 2024 and 2026 to carry out maintenance work and acquire operational vehicles for maintaining the country’s electrical transmission lines. CFE’s report aligns with different requests from the private sector that call for improvements in the national transmission and distribution infrastructure.

Akron Earmarks Investment in Jalisco for 2025
Akron announced plans to invest between US$100 and US$150 million in the construction of a power plant in Lagos de Moreno, Jalisco, with the goal of starting operations by 2025. This initiative aims to tap into a potential market of 25 million people in the region, marking Akron's entry into the Mexican electricity market.

Constitutional Reforms Advance to Plenary Vote
The Constitutional Points Commission of the Chamber of Deputies approved a ruling amending Art. 25, 27, and 28 of the Constitution. This ruling places the responsibility for the energy transition, internet service, and lithium exploitation under the control of the state, specifically under CFE. The ruling also specifies that CFE and PEMEX will cease to be state productive enterprises (EPEs) and will instead become "public state agencies."

RWE Signs Two Solar Power Agreements With Meta
RWE, the third-largest renewable energy company in the United States, announced the signing of two long-term power purchase agreements (PPAs) with Meta. The agreements cover energy produced by two solar farms currently under construction in Illinois and Louisiana, further advancing RWE’s US renewables portfolio.

Mexico's 70% Gas Dependence: A Critical Energy Weakness
Shirley Wagner, a Global Sustainability expert, pointed out that Mexico imports 70% of its natural gas from the United States, creating a critical vulnerability in the national energy sector. “It is crucial to address this situation, from reducing gas losses to strengthening infrastructure and storage,” Wagner explained.

Mexico's Data Centers Face Soaring Energy Needs
The growing adoption of Artificial Intelligence (AI) tools, applications, and services in Mexico and Latin America has significantly increased the projected energy demand for the 73 data centers that will be installed in the country over the next five years, surpassing initial expectations by more than 230%. According to the Mexican Data Center Association (MEXDC), this industry is expected to consume approximately 1,492MWh over the next five years.

CENACE, Huawei Launch 10 Gbps Network for Mexico's Power Grid
Mexico's National Energy Control Center (CENACE) has partnered with Huawei to implement a cutting-edge 10 Gbps Smart Power Campus Solution. This collaboration aims to transform CENACE's communications network, ensuring the stability, security, and efficiency necessary for the reliable operation of Mexico's National Electricity System.

CRE Requires Foreign Labs to Register for Fuel Certification
Foreign laboratories issuing quality certificates for automotive fuels according to NOM-016 must register with CRE. Foreign entities can obtain their registration as testing laboratories with the commission, in accordance with Agreement A/60/2024, recently published in the Official Journal of the Federation (DOF).

Siemens Energy Boosts Sustainable Development in Oaxaca
In an effort to strengthen sustainable production processes in Oaxaca, Siemens Energy has established a collaboration agreement with the state government, through the state’s Ministry of Economic Development (SEDECO) and the Ministry of Public Education (SEP). This agreement, signed at Siemens' headquarters in Mexico City, is aimed at boosting renewable energy generation and technological innovation in the region.

FIDESUR's Renewable Push: Green Hydrogen and Ammonia
The South-Southeast Regional Development Trust (FIDESUR) plans to develop two major energy clusters in the Isthmus of Tehuantepec and the Yucatan Peninsula. These clusters will focus on green hydrogen production, initially serving state-owned companies like PEMEX and CFE, as a substitute for natural gas. In a second phase, hydrogen is expected to be exported, according to Guillermo Woo, Executive Coordinator, FIDESUR. 

CFE Distribución Achieves 99.51% Coverage
CFE Distribución reported revenues of MX$88.588 billion (US$5.19 billion) and achieved electrification coverage of 99.51% of the population by the end of 1H24. The company noted an increase in revenue from recovered energy amounting to MX$3.125 billion, while its energy sales grew by MX$7.347 billion through July 2024.