Press release
New Fortress Energy Extends Islandwide Gas Supply Contract in Puerto Rico
NEW YORK--(BUSINESS WIRE)-- New Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) today announced a one-year extension of its 80 TBtu islandwide gas supply contract
About this update from New Fortress Energy Inc.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nNew Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) today announced a one-year extension of its 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority (\"PREPA\"). Additionally, the 10-year Operation and Maintenance Agreement between Genera, NFE’s subsidiary, and PREPA will be modified to eliminate future incentive payments in exchange for a $110 million payment. NFE worked closely with Puerto Rico Governor Jenniffer Gonzalez-Colon, the Puerto Rico Energy Bureau (“PREB”), the Puerto Rico Public-Private Partnerships Authority (“P3A”), and PREPA to streamline the incentive structure and fully aligns NFE and Puerto Rico with a single goal: to deliver reliable, clean power to Puerto Ricans at the lowest cost possible.\n\n\nUnder the islandwide gas supply contract, there is substantial capacity to supply both NFE’s current downstream gas demand as well as other legacy power plants running on diesel that can be converted to run on natural gas. These conversions are a tremendous opportunity for NFE and Puerto Rico alike to generate substantial cost savings and significantly reduce emissions, and also lay the groundwork for new long-term, cost-effective and sustainable power solutions on the island.\n\n\nThis agreement reinforces NFE’s longstanding commitment to strengthening Puerto Rico’s energy security. Since 2017 and the aftermath of Hurricane Maria, NFE was one of the first responders to Puerto Rico’s need for power and has invested hundreds of millions of dollars of capital into projects that have provided cheap and reliable energy to Puerto Rico. By providing natural gas, NFE has already saved Puerto Rico over $500 million thus far in fuel savings, and the extended gas supply contract offers pathways to billions of dollars of potential savings in the future.\n\n\n“We are pleased to reach this agreement, which strengthens our partnership with Puerto Rico,” said Wes Edens, Chairman and CEO of New Fortress Energy. “Optimizing our existing contract allows us to accelerate the delivery of cleaner, more affordable energy while achieving meaningful cost savings and environmental benefits for the people of Puerto Rico.”\n\n\nAbout New Fortress Energy Inc.\n\n\nNew Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to address energy poverty and accele...