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New Fortress (NFE) Advances Construction of Second FLNG Unit

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New Fortress Energy Inc. (NFE - Free Report) , a U.S.-based energy infrastructure company, has announced the closing of its $700-million loan, which will be used for the construction of its second floating liquefied natural gas (FLNG) unit, FLNG 2.

The company has successfully started liquefied natural gas (LNG) production at its first FLNG unit (FLNG 1). FLNG 1 is expected to deliver its first cargo in August 2024, and then enter full production.

NFE will proceed with the construction of FLNG 2 in collaboration with Comisión Federal de Electricidad. The partnership will leverage its extensive in-place terminal infrastructure, located onshore in Altamira, MX, for developing FLNG 2.

New Fortress deployed its proprietary Fast LNG solution in FLNG 1. The Fast LNG asset has a total production capacity of 1.4 million tons per annum (MTPA) or approximately 70 trillion British thermal units (TBtu). The new liquefaction facility is expected to implement the same proprietary technology that was used in FLNG 1. The construction of FLNG 2 is anticipated to be completed in the first half of 2026.

NFE stated that its FLNG complex is progressing fast and the first FLNG unit has begun producing LNG. For the second unit, the company has secured a loan to fully fund its construction. It has highlighted that such large infrastructure projects enhance its financial and operational value.

Zacks Rank and Key Picks

Currently, NFE carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , VAALCO Energy (EGY - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.

VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.

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