New Fortress Power Inc (NFE) has obtained approval from native authorities to proceed delivering pure fuel for Puerto Rico’s energy system for seven extra years.
The consent from the Monetary Oversight and Administration Board for Puerto Rico offers for the availability of about 75 trillion British thermal models (TBtu), New York Metropolis-based NFE stated in a web-based assertion.
“Beneath the phrases of the settlement, NFE will provide dependable, lower-emission pure fuel to assist improve grid stability and assist cleaner energy technology throughout Puerto Rico’s power system”, NFE stated.
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In keeping with NFE’s September 16 announcement concerning the agreed contract phrases, the settlement concerned “minimal annual take-or-pay volumes of 40 TBtu, growing to as much as 50 TBtu if sure circumstances are met”.
“This landmark settlement offers two essential advantages to the island. First, it establishes safety of provide in San Juan for the following seven years for energy vegetation at the moment working on LNG”, NFE chief government Wes Edens stated then.
“Second, it offers for incremental LNG volumes to be delivered, permitting for the conversion of further gas-ready vegetation at the moment burning diesel, leading to lots of of thousands and thousands of {dollars} in power financial savings for Puerto Ricans”.
NFE stated on the time, “Pricing of the volumes provided via the GSA [Gas Supply Agreement] is ready at a mix of 115 % of Henry Hub plus $7.95/million Btu, excluding pure fuel provided to the models at San Juan 5 & 6 (which has traditionally consumed ~20 TBtu per yr). As a substitute, these volumes are priced at 115 % of Henry Hub plus $6.50/MMBtu”.
In keeping with the September assertion, NFE expects to supply the LNG underneath the brand new GSA from its Quick LNG facility in Altamira, Mexico. With a capability of 1.4 million metric tons every year, the mission began operations within the fourth quarter of 2024, in response to NFE.
On March 17 NFE stated it had amended the extension of its present contract with the Puerto Rico Electrical Energy Authority (PREPA), totaling 80 billion Btu, to a time period of 100 days from the earlier one yr it introduced days earlier. The shortened extension offers time for a request for proposal for a brand new fuel contract with the bottom price, in response to NFE.
Asserting the one-year extension March 3, NFE stated, “Moreover, the 10-year Operation and Upkeep Settlement between Genera, NFE’s subsidiary, and PREPA shall be modified to eradicate future incentive funds in change for a $110 million fee”.
Final yr NFE offered two emergency energy vegetation it had put in in Puerto Rico in 2023 to PREPA for $373 million and thereafter entered into the 80-billion-Btu contract, as introduced by the corporate March 18, 2024.
In keeping with an October 9 assertion from the Puerto Rico Federal Affairs Administration (PRFAA), Puerto Rico has elevated its out there technology capability to three,600 MW because of plant restorations.
“In Might, the Costa Sur Energy Plant was repaired, including 410 MW to the system. Between June and August, the Aguirre 2 Energy Plant was restored, contributing 350 MW. In August, three combined-cycle models at Aguirre have been reactivated, including 150 MW. That very same month, Unit 6 of the San Juan Energy Plant returned to service, including 150 MW. And right now, after greater than two years, Unit 4 of the Palo Seco Energy Plant is as soon as once more operational, contributing an preliminary 150 MW throughout its testing part”, the PRFAA stated.
On November 12 america Division of Power (DOE) prolonged emergency orders that allowed Puerto Rico to keep up sufficient energy capability and safe transmission traces. The orders have been prolonged to February 10, 2026.
“The Division of Power’s 202(c) emergency orders have supplied concrete advantages for Puerto Rico, permitting us to revive 1,200 MW of baseload technology capability over the previous few months and entry wanted flexibilities to carry out vegetation management actions alongside transmission traces to cut back the chance of outages”, Puerto Rico Governor Jenniffer Gonzalez-Colon was quoted as saying in a DOE assertion.
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