NFE announced on Thursday that it received final approval for the seven-year gas supply agreement from the Financial Oversight and Management Board for Puerto Rico.
Moreover, the contract secures the delivery of approximately 75 TBtu of natural gas to support the island’s ongoing energy transformation initiatives, it said.
Under the terms of the agreement, NFE will supply natural gas to help enhance grid stability and support “cleaner” power generation across Puerto Rico’s energy system.
The long-term arrangement builds on NFE’s established presence in Puerto Rico and also reflects a shared commitment to improving energy resilience throughout the region, the company said.
“This long-term partnership between Puerto Rico and NFE will greatly benefit the island,” said Wes Edens, chairman and CEO of NFE.
“We greatly appreciate Governor González-Colón’s leadership and support during this process,” he said.
The Financial Oversight and Management Board of Puerto Rico recently announced that it has granted conditional approval to NFE for its long-term LNG supply deal.
According to the Oversight Board, the proposed contract requires NFE to enter into an agreement with a third-party supplier in case NFE is unable to supply LNG or declares force majeure.
Altamira LNG volumes
In September, NFE reached an agreement on contract terms with the Third-Party Procurement Office and PREPA for the long-term supply of LNG to Puerto Rico.
Pricing of the volumes supplied through the GSA is set at a blend of 115 percent of Henry Hub plus $7.95/MMBtu, excluding natural gas supplied to the units at San Juan 5 & 6 (which has historically consumed ~20 TBtu per year), the firm said.
Instead, these volumes are priced at 115 percent of Henry Hub plus $6.50/MMBtu.
The volumes under the GSA are expected to be supplied by LNG produced from NFE’s 1.4 mtpa Fast LNG facility located offshore Altamira, Mexico.
