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yesterday

New Fortress and Puerto Rico Agree on Seven-Year LNG Supply Terms

The pact requires signoff from Puerto Rico’s fiscal oversight board.

Altamira Fast LNG 1; Source: New Fortress Energy
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Overview

  • The agreement with the Third-Party Procurement Office and Public-Private Partnerships Authority covers up to 75 TBtu per year with take-or-pay minimums starting at 40 TBtu and potentially rising to 50 TBtu.
  • Pricing is set at a blend of 115% of Henry Hub plus $7.95/MMBtu, with San Juan 5 & 6 volumes priced at 115% of Henry Hub plus $6.50/MMBtu.
  • New Fortress plans to supply the gas from its 1.4 mtpa Altamira Fast LNG facility in Mexico, which reached commercial operation in Q4 2024 and is producing above nameplate.
  • Officials frame the seven-year supply as lowering power costs, securing fuel for San Juan plants, and enabling the conversion of diesel-burning units to natural gas.
  • The contract terms are under review by the Financial Oversight and Management Board of Puerto Rico, and New Fortress shares jumped, gaining 20.49% after hours and closing up 44.93% following the announcement.