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News Article

PEMEX and New Fortress Energy to Complete Deepwater Gas Project

By Anamary Olivas | Tue, 07/05/2022 - 13:14

PEMEX has signed a letter of intent with the US company New Fortress Energy to collaborate on a US$1.5 billion offshore natural gas project at the Lakach field in Mexico. Octavio Romero Oropeza, CEO, PEMEX, said that the shifting price environment for gas pushed the NOC to join the public-private association.

 

Lakach is a deepwater deposit with resources of up to 900Bcf of natural gas, around 1km from sea floor to sea level in the Gulf of Mexico, explained Romero at the opening of the Olmeca refinery in Dos Bocas, Tabasco. PEMEX had already invested US$1.3 billion in the project in the past. The new partnership therefore marks the return of the NOC to deep waters, after its initial dabbling in the environment was considered unviable. Romero also reported that first production from this field will come as early as July 2023.

 

According to Arturo Carranza, Energy Project Director, Akza Advisors, Lakach is a deepwater field where significant geological, engineering and infrastructure work has been carried out to capitalize on its potential. Deepwater fields can take an average of 10 years to be developed, so the progress made at Lakach would be a boon for PEMEX and its new partner.

 

“Based on these two elements, field knowledge and infrastructure development, ​​it is reasonable to assume that Lakach's natural gas production can be brought to consumption centers in a relatively short amount of time. Now that the natural gas market in Mexico is marked by the volatility in hydrocarbon prices and by high dependence on supply from the US, PEMEX understandably seeks to relaunch [Lakach]," said Arturo Carranza.

 

The proposed partnership will reinforce natural gas production in Mexico, an increasingly important resource now that the country is more dependent on natural gas for power production, using it to generate more than half of the country’s electricity supply. According to Forbes, the country’s domestic natural gas demand has grown 30 percent during the past three years, reaching over 9Bcf/d.

The data used in this article was sourced from:  
Government, PEMEX
Photo by:   aymane jdidi
Anamary Olivas Anamary Olivas Journalist & Industry Analyst