The photo is sourced from newfortressenergy.com
In addition to gas liquefaction capacities, the Fast LNG Altamira project is equipped with a floating terminal for LNG storage and shipment.
Since the feedstock for the project is imported from the United States, LNG supplies are subject to U.S. regulations. The project operator has the right to supply LNG to countries with which the United States has existing free trade agreements. This category includes 20 countries, including those in North and South America: Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Peru. To achieve a wider geographic reach, the project operator, New Fortress Energy, will need to obtain a special permit from the U.S. Department of Energy.
In addition to the second phase of Fast LNG Altamira, the first phase of the Energia Costa Azul LNG project with a capacity of 4.1 billion cubic meters of gas per year, which will be based on the west coast of Mexico, is currently under construction. The second phase of Energia Costa Azul LNG is to produce 16.4 billion cubic meters of gas per year. Projects that have been planned but have not yet been implemented include the Saguaro Energia LNG, Amigo LNG, Gato Negro LNG, Salina Cruz LNG and Vista Pacifico LNG plants, whose capacity is going to total 46 billion cubic meters of gas per year.
The implementation of these projects will increase the accessibility of liquefied natural gas in South America, where LNG imports are highly volatile due to high dependence on the largest supplier (the United States). For instance, LNG imports in South America dropped by 42% in 2022 (to 14.2 billion cubic meters), including due to the U.S. reorientation towards the European market, where prices rose sharply at the time. In 2023, amid falling prices and stabilization of gas demand in Europe, LNG imports in South America went up by 12% (to 15.8 billion cubic meters), although in absolute terms they did not reach the 2021 figure (24.3 billion cubic meters).
At the same time, there are a number of major consumers in the region, including in the power industry. According to Ember, gas became the second most popular source of electricity in South America in 2023: it accounted for 24% of the power output, whereas hydroelectric power plants stood at 43% (with the share of all other sources at 33%). The introduction of new LNG capacities will reduce the risk of feedstock shortages for gas-fired TPPs in the region.
