Lakach

Lakach Deepwater Gas Field Profile

The Lakach Deepwater Gas Field is located in the Gulf of Mexico, approximately 90-93 km southeast of the Port of Veracruz in south-eastern Mexico. It is also 136 km northwest of Coatzacoalcos and 60 km northeast of Gas Station 5 Lerdo.
The field is situated at water depths ranging between 850 meters and 1,300 meters.

The Lakach field was discovered in 2007 by Petróleos Mexicanos (Pemex) through the drilling of the Lakach-1 well at a water depth of 988 meters and a total depth of 3,813 meters. The field was further appraised in 2010 with the drilling of the Lakach-2DL well.
The gas reserves are found in reservoirs of the Lower Miocene age, primarily composed of lithic sandstone and limolites.

The field is estimated to hold around 900 billion cubic feet (bcf) of gas reserves, although some sources indicate slightly different figures, such as 850 bcf or 937 bcf.
The total resource potential in the area, including the nearby Kunah and Piklis fields, is approximately 3.3 trillion cubic feet (tcf) of gas.

The project was initially approved for development in November 2007, but it was halted due to the fall in oil prices in 2014. Development resumed in 2022 after Pemex entered into a strategic partnership with New Fortress Energy (NFE).
In October 2022, NFE signed an agreement with Pemex to complete the development of the Lakach field, which includes an integrated upstream and natural gas liquefaction project. However, by November 2023, the project was reportedly scrapped due to disagreements on terms, including pricing. Efforts to revive the project are ongoing, involving discussions with billionaire investor Carlos Slim’s team.

The development plan involves drilling approximately seven subsea wells connected to a subsea manifold cluster configuration.
New Fortress Energy committed to investing an additional $1.5 billion to complete the project, which includes deploying a 1.4 million tonnes per year (MTPA) Sevan Driller Floating Liquefied Natural Gas (FLNG) unit to liquefy the majority of the production. The FLNG unit is expected to be deployed by the first half of 2024.
The project also involves the construction and deployment of FLNG facilities, with the first unit’s hull conversion and fabrication of topsides being conducted at a shipyard in Singapore.

Hydrocarbon production at Lakach is expected to begin in the first quarter of 2024, although some sources suggest a start in 2025.
The production life of the field is estimated to be around ten years, with potential extensions if nearby fields are developed.
The gas produced will be liquefied and stored in a separate tanker moored near the FLNG facility. Pemex will retain ownership of the infrastructure and may sell the remaining gas and condensate to customers.

The initial investment by Pemex was $1.4 billion. New Fortress Energy has committed an additional $1.5 billion to the project.
The total development cost is estimated to be around $1.79 billion.

As of early 2024, the project is in a state of flux due to the previous scrapping and ongoing discussions to revive the development. The exact timeline and details may change based on the outcome of these negotiations.