US firm scores 20-year gas supply gig in Puerto Rico

U.S. energy infrastructure player New Fortress Energy (NFE) has gotten a hold of a multi-year natural gas supply deal for a 478 MW combined-cycle power plant, which is currently under development in San Juan, Puerto Rico.

The execution of a 20-year gas supply agreement (GSA) with Energiza, a Puerto Rican company wholly owned by Tropigas de Puerto Rico (Tropigas) and Cratos Project Services (Cratos), will see NFE provide natural gas to a 478 MW combined-cycle power plant being developed in San Juan, adjacent to the U.S. firm’s existing San Juan LNG import terminal.

Wes Edens, Chairman and CEO of New Fortress Energy, commented: “The long-term partnership between Energiza and NFE will greatly benefit Puerto Rico and we’re excited to be part of this historic milestone. This power plant will serve as a much-needed cleaner, reliable, and efficient power source to enhance Puerto Rico’s aging power system.”

According to New Fortress Energy, the Energiza power plant will be the first to be constructed in Puerto Rico since 1995. This facility is expected to begin operations in 2028. Given the island’s keen interest in the energy transition, the power plant is envisioned to embrace renewable energy and hydrogen technology.

Thanks to a 30-year power purchase and operating agreement (PPOA) with the Puerto Rico Electric Power Authority (PREPA), Energiza will develop, design, finance, permit, construct, install, test, and commission a new combined-cycle LNG to H2 generating facility with multiple fuel capabilities, including green hydrogen fuel capability.

The multi-fuel capable LNG to H2 generation facility, which will be able to run primarily on natural gas and ultra-low sulfur diesel as backup fuel and transition to 100% green hydrogen in the future, is expected to contribute to the reliability and resiliency of Puerto Rico’s electric grid, the diversification of energy sources, and the reduction of cost and reliance on fossil fuels.

Furthermore, the LNG to H2 generation facility is forecast to be the first-ever power plant with hydrogen fuel capability to be built and operated in Puerto Rico once it comes online. With hydrogen in the fuel mix, this facility is anticipated to help cut the carbon emission intensity.

NFE, which was a busy bee in 2024, revealed a new multi-year assignment recently for a floating storage and regasification unit (FSRU) with Egypt’s EGAS. The U.S. player also faces a federal securities class action following the disclosure of an adjusted EBITDA below its previous expectations, which is said to have led to a drop in stock prices.

One of New Fortress Energy’s key milestones last year was the start-up of operations at a floating liquefied natural gas (FLNG) facility, Fast LNG, encompassing three repurposed jack-up rigs, which came into operation off the coast of Altamira, Mexico, in mid-July 2024.