New Fortress Energy it ended its attempt to convert the Sevan Driller and Sevan Brasil units into floating LNG facilities, putting an end to nearly four years of plans linked to its Fast LNG strategy.
New Fortress Energy sends two semi-submersibles to be scrapped
New Fortress Energy (NFE) it sold for scrap two old Seadrill semi-submersible platforms that it had acquired in 2022 with the intention of incorporating them into its Fast LNG program.
These are the Sevan Driller, built in 2009, and the Sevan Brasil, delivered in 2012, according to demolition data from VesselsValue, both vessels were sold for recycling in September. The value of the transactions and the shipyard that will handle the dismantling have not yet been disclosed.
With this decision, NFE puts an end to a project that lasted approximately four years and sought to transform these cylindrical structures into floating facilities capable of producing liquefied natural gas (LNG).
The company had acquired the platforms from Seadrill in April 2022, paying $18 million for the Sevan Driller and another $6 million for the Sevan Brasil. Both units were in cold storage and were purchased for a use other than traditional drilling operations.
From drilling platforms to Fast LNG facilities
Later, New Fortress Energy incorporated both semi-submersibles into its FLNG infrastructure expansion plans. Sembcorp Marine, currently part of Seatrium, received contracts to carry out engineering work, conversion of the hulls and integration of the liquefaction equipment.
The concept involved installing technology developed by NFE on the Sevan structures, each converted unit would have an approximate production capacity of 1.4 million tons of LNG per year.
Initially, the first conversion was supposed to be completed during the first half of 2024, however, the project did not progress according to the planned schedule.
In addition, the Sevan Driller was assigned to the Lakach gas project, located off the coast of Veracruz, Mexico. NFE was working with Pemex on a plan to use the converted platform to liquefy a significant portion of the gas produced at this deepwater field.
That project also failed to materialize. In 2025, New Fortress Energy determined that the development of Lakach was no longer likely. The decision was linked to a $123.1 million asset impairment recorded by the company.
The Fast LNG program changes course
While abandoning these conversions, New Fortress Energy continues to operate its first Fast LNG facility off the coast of Altamira, Mexico. This unit has an approximate capacity of 1.4 million tons per year.
However, the future of a second Fast LNG facility remains undefined, with the company indicating that it does not plan to allocate significant amounts of additional capital to the project following its financial restructuring.
Given this scenario, NFE is seeking an external partner to participate in the continued development, the completion of this second facility would still require an estimated investment of between $750 million and $1.500 million.
The sale of Sevan Driller and Sevan Brasil also allows the company to remove two assets that had ceased to have a clear function within its expansion strategy in the LNG business.
The sale comes after the restructuring of New Fortress Energy
The transaction comes amid a deep financial restructuring process within New Fortress Energy. For years, the company expanded its LNG infrastructure and electricity generation in various markets in America, while accumulating a high debt burden.
By the end of 2025, pressure on its liquidity began to make it difficult to meet interest payments. Total debt reached approximately $8.900 million, while about $5.700 million was subsequently included in the restructuring process.
NFE decided to proceed with the process through restructuring plans under English law, the High Court of England approved these plans in June 2026, and they subsequently obtained judicial recognition in the United States.
After completing the operation, the company managed to significantly reduce its corporate debt and separate its Brazilian assets from the rest of its business structure.
In this context, the dismantling of the two former Seadrill platforms represents a further step in the removal of assets associated with projects that no longer fit into New Fortress Energy’s investment plans.
Source: Offshore
Photo: Shutterstock
