New Fortress Energy Inc. in March announced a one-year extension of its 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority.
Additionally, the 10-year Operation and Maintenance Agreement between Genera, NFE’s subsidiary, and PREPA will be modified to eliminate future incentive payments in exchange for a $110 million payment.
NFE said it worked closely with Puerto Rico Governor Jenniffer Gonzalez-Colon, the Puerto Rico Energy Bureau, the Puerto Rico Public-Private Partnerships Authority, and PREPA to streamline the incentive structure “and fully aligns NFE and Puerto Rico with a single goal: to deliver reliable, clean power to Puerto Ricans at the lowest cost possible.”
Under the islandwide gas supply contract, there is substantial capacity to supply both NFE’s current downstream gas demand as well as other legacy power plants running on diesel that can be converted to run on natural gas, the company said.
“These conversions are a tremendous opportunity for NFE and Puerto Rico alike to generate substantial cost savings and significantly reduce emissions, and also lay the groundwork for new long-term, cost-effective and sustainable power solutions on the island.”
Since 2017 and the aftermath of Hurricane Maria, NFE "was one of the first responders to Puerto Rico’s need for power and has invested hundreds of millions of dollars of capital into projects that have provided cheap and reliable energy to Puerto Rico. By providing natural gas, NFE has already saved Puerto Rico over $500 million thus far in fuel savings, and the extended gas supply contract offers pathways to billions of dollars of potential savings in the future," it said.
