New Fortress Energy Inc. announced on September 16, 2025, that it has reached an agreement on contract terms with the Third-Party Procurement Office (3PPO) and the Puerto Rico Public-Private Partnerships Authority (P3A) for the long-term supply of liquefied natural gas (LNG) to Puerto Rico. The contract is currently under review for approval by the Financial Oversight and Management Board of Puerto Rico (FOMB).
This gas supply agreement (GSA) will provide a reliable and affordable supply of natural gas to Puerto Rico’s power system for a term of 7 years. It is designed to support Puerto Rico’s efforts to replace expensive, higher-emission liquid fuels with cleaner natural gas, aiming to deliver significant savings to Puerto Rican ratepayers.
The agreement specifies that up to 75 TBtu of natural gas per year can be supplied through the GSA, with minimum annual take-or-pay volumes of 40 TBtu, increasing to up to 50 TBtu if certain conditions are met. Pricing for most volumes is set at a blend of 115 percent of Henry Hub plus $7.95/MMBtu, with specific volumes for San Juan 5 & 6 priced at 115 percent of Henry Hub plus $6.50/MMBtu. The volumes are expected to be supplied by NFE's 1.4 MTPA Fast LNG facility offshore Altamira, Mexico, which achieved commercial operation in Q4 2024 and is producing above nameplate capacity.
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