New Fortress Energy Secures Multi-Year Gas Supply Deal for Puerto Rico Power Plant

U.S. energy infrastructure player New Fortress Energy (NFE) has recently finalized a significant natural gas supply agreement for a 478 MW combined-cycle power plant in San Juan, Puerto Rico.

The 20-year gas supply agreement (GSA) with Energiza, a Puerto Rican company owned by Tropigas de Puerto Rico and Cratos Project Services, will involve NFE supplying natural gas to the power plant being developed in San Juan, adjacent to the company’s existing San Juan LNG import terminal.

Wes Edens, Chairman and CEO of New Fortress Energy, expressed his excitement about the partnership with Energiza, stating, “This power plant will serve as a much-needed cleaner, reliable, and efficient power source to enhance Puerto Rico’s aging power system.”

The Energiza power plant is set to be the first facility constructed in Puerto Rico since 1995 and is expected to commence operations in 2028. With a focus on energy transition, the plant will incorporate renewable energy and hydrogen technology.

Through a 30-year power purchase and operating agreement (PPOA) with the Puerto Rico Electric Power Authority (PREPA), Energiza will develop a combined-cycle LNG to H2 generating facility with green hydrogen fuel capability, contributing to the island’s energy diversification and reduction of fossil fuel reliance.

The facility, designed to run on natural gas, ultra-low sulfur diesel, and eventually 100% green hydrogen, aims to enhance Puerto Rico’s electric grid reliability and reduce carbon emissions. It will be the first power plant with hydrogen fuel capability in Puerto Rico.

Despite recent challenges, including a federal securities class action and adjustments to EBITDA expectations impacting stock prices, NFE remains active in the energy sector. The company’s Fast LNG facility in Mexico, utilizing repurposed jack-up rigs, commenced operations in mid-July 2024.