New Fortress Energy looks to fast-track LNG developments

Feb. 28 (UPI) -- New York-based New Fortress Energy said Tuesday it was working to take more control of its supplies of liquefied natural gas after reporting that profits improved over third-quarter levels.

New Fortress is developing a so-called Fast LNG program, which utilizes modular technology to lower costs and quicken the pace of deployment. The company said last year that it expected the program could account for more than half of the LNG supply expected on the market between this year and next.

While the company said it relied in the past on third-party suppliers, its Fast LNG program could change that.

"We believe these developments will allow us to control our own LNG supply and complete the value chain enabling full vertical integration of our business," it said.

Giles Fareer, the head of gas and LNG research at Wood Mackenzie, said recently that the geopolitical premium from the war in Ukraine supported higher natural gas prices last year and led to a surge in long-term export deals, which "created huge momentum" for LNG project development.

Wood Mackenzie expects the United States to overtake Australia and Qatar this year to become the world leader in LNG exports.

New Fortress said it invested more than $2 billion on its Fast LNG program last year. By the middle of this year, it expects to start construction on its first-ever floating liquefied natural gas unit.

The company reported adjusted net income of $182.7 million during the fourth quarter, an improvement over third quarter levels of $85.6 million.