Puerto Rico confirms $4B LNG supply pact with New Fortress Energy

Puerto Rico Governor Jenniffer Gonzalez Colon, along with the Energy Czar and Executive Director of the Public-Private Partnerships Authority, Engineer Josue Colon, and the Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority and Secretary of the Interior Francisco Domenech, said the territory has achieved significant savings for the purchase of liquefied natural gas. This agreement, submitted to the Financial Oversight and Management Board for Puerto Rico for approval, establishes historic protections for the interests of the people of Puerto Rico, including significant savings and the elimination of the exclusivity clause for the use of the New Fortress Energy (NFE) terminal in San Juan Bay. The original contract proposed by NFE, dated June 28, 2025, had a 15-year extension, with exclusivity provisions, representing an estimated cost of $20.1B. Following negotiations by the P3 and the 3PPO, a new draft agreement was reached on September 12, 2025, reducing the total estimated cost to approximately $4B, shortening the term to seven years with an option for three additional years, eliminating exclusivity clauses, achieving competitive pricing, adjusting minimum purchase quantities to levels certified by Genera Puerto Rico and validated by the 3PPO technical team, and inserting a Tolling Agreement that allows the Government to use the natural gas terminal located in San Juan in the event that NFE is unable to supply fuel.