American Energy ready to fortify Puerto Rico’s security of supply with LNG cargos

Crowley, a U.S.-owned and operated maritime, energy, and logistics solutions company, has joined forces with Naturgy, enabling it to send what it describes as the first U.S. liquified natural gas (LNG) carrier (LNGC) to Puerto Rico, bolstering the North American country’s energy security amid growing power demand.

By raising the U.S. flag on American Energy, an LNG carrier, which is said to be the first domestic one beginning operations to transport U.S.-sourced natural gas to Puerto Rico, Crowley claims to have tucked a milestone under its belt, which will provide the island with increased access to “the reliable supply of U.S.-produced LNG,” lending a helping hand in addressing the country’s ongoing power demands.

To make this happen, Crowley and Naturgy have joined forces through a multi-year agreement that provides for the regular delivery of the U.S. mainland-sourced LNG to the latter’s operating facility in Penuelas, Puerto Rico. With a capacity of 130,400 cubic meters (34.4 million gallons) per voyage, the Crowley-owned carrier American Energy will operate under the U.S. Coast Guard Authorization Act of 1996.

Jenniffer González-Colón, Puerto Rico Gov., commented: “The entry into service of American Energy marks a significant step for fuel supply reliability in Puerto Rico for our energy grid, which will greatly benefit our people. This partnership is an initiative to act using existing regulations to increase access to a U.S.-based LNG source that expands our options for the stabilization of our energy grid, as we work towards providing our residents and businesses a more consistently reliable power generation source.”

The 900-foot-long (274 meters) LNG carrier, which has a CAP 1 rating, certifying its top rating for safety, vessel condition, and compliance with all regulatory requirements, is perceived to build on Crowley’s 70-plus years of commitment to Puerto Rico, as the firm also operates the full-service marine Isla Grande cargo terminal in San Juan for its container and roll-on/roll-off vessels, including two LNG-fueled ships, and logistics services.

Tom Crowley, Chairman and CEO of Crowley Corporation, highlighted: “We are proud and privileged to expand U.S. LNG availability in Puerto Rico in partnership with Naturgy. LNG is an ample, reliable energy source available in the U.S. that provides a more resilient and lower-emission option as part of our nation’s energy portfolio for quickly serving the growing power needs of Puerto Rico while supporting American jobs, American energy production and U.S. national security.”

Moreover, the U.S. player annually delivers over 94 million gallons of LNG through its LNG loading terminal in Penuelas and provides ocean delivery and land transportation using ISO tank containers. Each LNG delivery at full capacity aboard American Energy is said to provide enough energy to power 80,000 homes for an entire year.

Willie Barrere, American Maritime Officers National President, remarked: “AMO is proud to be a part of this historic partnership that benefits the people of Puerto Rico. U.S. Merchant Mariners, many of whom were born in Puerto Rico, sailing on Jones Act vessels, have been reliably delivering goods to the Commonwealth for decades. Now we will deliver LNG fuel to power the residents and further strengthen the bond between Puerto Rico and our U.S. seafarers.” 

In addition, LNG is labeled as a lower-carbon fuel, emitting less greenhouse gas (GHG) emissions compared to diesel and other traditional energy sources. The American Energy ship will be crewed by U.S. mariners and provide regular service from the U.S. Gulf Coast to Puerto Rico.

Jon Ganuza, General Manager of Supply and Wholesale Markets at Naturgy, emphasized: “This contract strengthens our presence in the global LNG market, particularly in the United States, and allows Puerto Rico to obtain a stable and competitive energy supply route.”