New Fortress Energy Inc. is excited to announce two pivotal transactions that underscore its dedication to providing accessible and sustainable energy solutions in Puerto Rico.
The Company has divested the emergency power plants it erected in San Juan and Palo Seco on behalf of the U.S. Army Corps of Engineers to the Puerto Rico Electric Power Authority for a sum of $373 million in cash, subject to specific terms and conditions. Constructed in 2023 as a rapid response to a competitive bid by the U.S. Army Corps of Engineers, these plants played a vital role in stabilizing Puerto Rico’s power grid following recent natural disasters. As intended, ownership of these plants has now been transferred to PREPA, solidifying their position as a cornerstone of Puerto Rico’s energy infrastructure.
Additionally, through a competitive bidding process, NFE has secured a new island-wide gas supply contract with PREPA, amounting to 80 TBtu. This contract ensures a continued gas supply to the aforementioned power plants for up to four years. The increased gas volumes under this agreement will facilitate the conversion of other plants on the island from diesel to gas, thereby delivering cleaner and more cost-effective energy solutions to Puerto Rico.
With the early termination of the contracts governing the construction, operations, and associated costs of these plants, NFE anticipates negotiating a mutually beneficial settlement of all outstanding obligations in the near future.
Wes Edens, chairman and CEO of New Fortress Energy, remarked, “We entered the Puerto Rico market in 2017 based on the island’s emergency need for natural gas and power. The transactions announced today mark a significant milestone in our continued commitment to Puerto Rico’s energy security and cost reduction efforts while significantly increasing our business in the region.”
For more information visit www.newfortressenergy.com
