New Fortress Energy Extends Puerto Rico Gas Supply Deal
(P&GJ) — New Fortress Energy Inc. has extended its island-wide gas supply contract with the Puerto Rico Electric Power Authority (PREPA) for another year. The contract covers 80 TBtu of natural gas supply.
As part of the agreement, NFE is also modifying the 10-year Operation and Maintenance Agreement between its subsidiary, Genera, and PREPA. The change eliminates future incentive payments in exchange for a $110 million lump-sum payment. The company worked with Puerto Rico Governor Jenniffer Gonzalez-Colon, the Puerto Rico Energy Bureau (PREB), the Public-Private Partnerships Authority (P3A), and PREPA to streamline the incentive structure.
The extended gas supply contract allows NFE to serve both its existing customers and legacy diesel-fired power plants that can be converted to natural gas. These conversions could reduce emissions and cut energy costs while supporting Puerto Rico’s long-term energy transition.
Since 2017, NFE has invested hundreds of millions of dollars in Puerto Rico’s energy infrastructure. The company says its natural gas supply has already saved Puerto Rico over $500 million in fuel costs, with the extended contract offering potential for billions more in future savings.
“We are pleased to reach this agreement, which strengthens our partnership with Puerto Rico,” said Wes Edens, Chairman and CEO of New Fortress Energy. “Optimizing our existing contract allows us to accelerate the delivery of cleaner, more affordable energy while achieving meaningful cost savings and environmental benefits for the people of Puerto Rico.”
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- Enbridge Adds Turboexpanders at Pipeline Sites to Power Data Centers in Canada, Pennsylvania
- Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
- US Poised to Become Net Exporter of Crude Oil in 2023
- EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline
Comments