New Fortress Energy receives conditional approval for Puerto Rico deal

The Financial Oversight and Management Board for Puerto Rico announced that its members approved with a condition the proposed contract between the Puerto Rico Electric Power Authority and the Puerto Rico Public-Private Partnership Authority, and NF Energia to supply liquified natural gas to the San Juan and Palo Seco power generation units, as well as to other units as they become operational on natural gas. The proposed contract requires NFE to enter into an agreement with a third-party supplier in case NFE is unable to supply LNG or declares force majeure. The Oversight Board’s approval of the proposed contract is conditioned upon the Government revising the current LNG Tolling Term Sheet for clarity. Further, the approval is on the basis that the Government’s will undertake a prompt and thorough assessment of the lease agreement executed between the Puerto Rico Ports Authority and NFE and applicable law to develop competitive open port access to the generation facilities in San Juan as an alternative to an entry point under exclusive supplier control.