New Fortress (NFE) Advances Construction of Second FLNG Unit

Group 1: Company Developments - New Fortress Energy Inc. has successfully started liquefied natural gas (LNG) production at its first floating liquefied natural gas (FLNG) unit, FLNG 1, which is expected to deliver its first cargo in August 2024 and then enter full production [1] - The company has secured a $700-million loan for the construction of its second FLNG unit, FLNG 2, which is anticipated to be completed in the first half of 2026 [5][6] - The FLNG complex is progressing rapidly, with the first unit already producing LNG, and the company emphasizes that such large infrastructure projects enhance its financial and operational value [7] Group 2: Production Capacity and Technology - FLNG 1 utilizes New Fortress's proprietary Fast LNG solution, with a total production capacity of 1.4 million tons per annum (MTPA), equivalent to approximately 70 trillion British thermal units (TBtu) [2] - The new liquefaction facility for FLNG 2 is expected to implement the same proprietary technology used in FLNG 1 [2] Group 3: Industry Context - The energy sector includes companies like SM Energy, VAALCO Energy, and Energy Transfer, with SM Energy currently holding a Zacks Rank 1 (Strong Buy) and VAALCO and Energy Transfer both holding a Zacks Rank 2 (Buy) [3] - VAALCO Energy operates in upstream operations with a diversified presence in Africa and Canada, indicating a positive production outlook [4] - Energy Transfer is a midstream player with a diversified portfolio of energy assets, boasting a pipeline network extending over 125,000 miles across 44 states, suggesting a positive outlook for the company [10]