New Fortress Energy and Puerto Rico finalise 7-year LNG deal

US LNG developer New Fortress Energy (NFE) has received final approval from Puerto Rico authorities to conclude a 7-year LNG supply deal, the US firm announced on December 4.

Under the terms of the deal, New Fortress Energy will deliver 75 trillion British thermal units (TBtu) of natural gas per year. The minimum annual take-or-pay volume has been set at 40 TBtu but can rise to 50 TBtu depending on conditions met.

The agreement’s pricing has been set at 115% of Henry Hub plus $7.95 per million British Thermal units (MMBtu). Although, pricing for San Juan 5 & 6 units will be 115% plus $6.50 per MMBtu.

The super-chilled fuel will be supply from New Fortress Energy’s 1.4mn tonnes per year (tpy) Fast LNG plant located offshore Altamira, Mexico. The Fast LNG facility came online in late 2024 and is now producing the super-cooled gas above its nameplate capacity.

The finalisation of the agreement comes after a preliminary deal was inked with the Puerto Rico Public-Private Partnerships Authority (P3A) and the Third-Party Procurement Office (3PPO) in September. The Financial Oversight and Management Board for Puerto Rico provided final signoff for the contract.

New Fortress Energy has committed to supplying the island with lower-emission LNG, which will aid grid stability and provide cleaner power generation.

“This long-term partnership between Puerto Rico and NFE will greatly benefit the island,” Wes Edens, New Fortress Energy’s Chairman and CEO said in a statement.

“We greatly appreciate Governor González-Colón’s leadership and support during this process. Securing seven years of reliable gas supply is a major step forward for the island’s energy transition,” Edens added.

New Fortress Energy has been active in Puerto Rico since 2017 and commissioned its LNG import terminal in 2020. The company has a strong footprint in the Caribbean region, chartering a floating storage and regasification unit (FSRU) in the Dominican Republic and it also recently sold its Jamaican assets to Excelerate Energy.