New Fortress Energy Extends Islandwide Gas Supply Contract in Puerto Rico
New Fortress Energy (NFE) has announced a one-year extension of its 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority (PREPA). The company's subsidiary, Genera, will modify its 10-year Operation and Maintenance Agreement with PREPA, eliminating future incentive payments in exchange for a $110 million payment.
The agreement aims to deliver reliable, clean power to Puerto Ricans at the lowest cost possible. The contract provides capacity to supply NFE's current downstream gas demand and convert legacy diesel-powered plants to natural gas, potentially generating substantial cost savings and reducing emissions.
Since 2017, NFE has invested hundreds of millions in Puerto Rico's energy infrastructure, resulting in over $500 million in fuel savings for the island, with the extended contract promising potential billions in future savings.
New Fortress Energy (NFE) ha annunciato un'estensione di un anno del suo contratto di fornitura di gas di 80 TBtu su tutta l'isola con l'Autorità Elettrica di Porto Rico (PREPA). La sussidiaria dell'azienda, Genera, modificherà il suo Accordo di Operazione e Manutenzione di 10 anni con PREPA, eliminando i futuri pagamenti incentivanti in cambio di un pagamento di 110 milioni di dollari.
L'accordo mira a fornire energia affidabile e pulita ai portoricani al costo più basso possibile. Il contratto prevede capacità per soddisfare la domanda attuale di gas di NFE e convertire gli impianti a diesel legacy in gas naturale, generando potenzialmente notevoli risparmi sui costi e riducendo le emissioni.
Dal 2017, NFE ha investito centinaia di milioni nell'infrastruttura energetica di Porto Rico, portando a oltre 500 milioni di dollari di risparmi sui carburanti per l'isola, con il contratto esteso che promette potenziali miliardi di risparmi futuri.
New Fortress Energy (NFE) ha anunciado una extensión de un año de su contrato de suministro de gas de 80 TBtu en toda la isla con la Autoridad de Energía Eléctrica de Puerto Rico (PREPA). La subsidiaria de la empresa, Genera, modificará su Acuerdo de Operación y Mantenimiento de 10 años con PREPA, eliminando los futuros pagos de incentivos a cambio de un pago de 110 millones de dólares.
El acuerdo tiene como objetivo proporcionar energía confiable y limpia a los puertorriqueños al costo más bajo posible. El contrato ofrece capacidad para satisfacer la demanda actual de gas de NFE y convertir las plantas de diesel heredadas a gas natural, lo que potencialmente generará ahorros significativos en costos y reducirá las emisiones.
Desde 2017, NFE ha invertido cientos de millones en la infraestructura energética de Puerto Rico, resultando en más de 500 millones de dólares en ahorros de combustible para la isla, con el contrato extendido prometiendo potenciales miles de millones en ahorros futuros.
뉴 포트리스 에너지 (NFE)는 푸에르토리코 전기 공사 (PREPA)와의 80 TBtu 섬 전체 가스 공급 계약을 1년 연장한다고 발표했습니다. 회사의 자회사인 Genera는 PREPA와의 10년 운영 및 유지 보수 계약을 수정하여 향후 인센티브 지급을 없애고 1억 1천만 달러의 지급을 받기로 했습니다.
이 계약은 푸에르토리코 주민들에게 가능한 최저 비용으로 신뢰할 수 있는 청정 전력을 제공하는 것을 목표로 하고 있습니다. 이 계약은 NFE의 현재 하류 가스 수요를 공급하고 구식 디젤 발전소를 천연가스로 전환할 수 있는 용량을 제공합니다. 이는 상당한 비용 절감과 배출 감소를 가져올 수 있습니다.
2017년 이후, NFE는 푸에르토리코의 에너지 인프라에 수억 달러를 투자하여 섬에 5억 달러 이상의 연료 절감을 가져왔으며, 연장된 계약은 향후 수십억 달러의 잠재적 절감을 약속합니다.
New Fortress Energy (NFE) a annoncé une extension d'un an de son contrat de fourniture de gaz de 80 TBtu à l'Autorité de l'Énergie Électrique de Porto Rico (PREPA). La filiale de l'entreprise, Genera, modifiera son Accord d'Exploitation et de Maintenance de 10 ans avec PREPA, supprimant les paiements d'incitation futurs en échange d'un paiement de 110 millions de dollars.
L'accord vise à fournir une énergie fiable et propre aux Portoricains au coût le plus bas possible. Le contrat prévoit la capacité de répondre à la demande actuelle de gaz de NFE et de convertir les centrales à diesel héritées en gaz naturel, ce qui pourrait générer d'importantes économies de coûts et réduire les émissions.
Depuis 2017, NFE a investi des centaines de millions dans l'infrastructure énergétique de Porto Rico, entraînant plus de 500 millions de dollars d'économies de carburant pour l'île, avec le contrat prolongé promettant des milliards d'économies futures potentielles.
New Fortress Energy (NFE) hat eine einjährige Verlängerung seines 80 TBtu umfassenden Gasliefervertrags mit der Puerto Rico Electric Power Authority (PREPA) angekündigt. Die Tochtergesellschaft des Unternehmens, Genera, wird ihren 10-jährigen Betriebs- und Wartungsvertrag mit PREPA ändern und zukünftige Anreizzahlungen gegen eine Zahlung von 110 Millionen Dollar streichen.
Das Abkommen zielt darauf ab, den Puerto Ricanern zuverlässige, saubere Energie zu den niedrigstmöglichen Kosten zu liefern. Der Vertrag bietet die Kapazität, den aktuellen Gasbedarf von NFE zu decken und alte dieselbetriebene Kraftwerke auf Erdgas umzustellen, was potenziell erhebliche Kosteneinsparungen und eine Reduzierung der Emissionen zur Folge hat.
Seit 2017 hat NFE Hunderte Millionen in die Energieinfrastruktur von Puerto Rico investiert, was zu über 500 Millionen Dollar an Kraftstoffeinsparungen für die Insel geführt hat, wobei der verlängerte Vertrag potenzielle Milliarden an zukünftigen Einsparungen verspricht.
- Secured one-year extension of 80 TBtu gas supply contract
- Immediate $110 million payment received
- Demonstrated $500 million in fuel savings already achieved
- Additional capacity to convert diesel plants to natural gas
- Potential for billions in future cost savings
- Elimination of future incentive payments under O&M agreement
Insights
NFE's one-year extension of its 80 TBtu gas supply contract with PREPA represents a significant business continuity win in a strategic market. The
This restructured agreement offers NFE two notable financial advantages: immediate revenue recognition through the upfront payment and potential upsell opportunities by converting remaining diesel-powered plants to natural gas. The latter represents a meaningful growth vector within their existing footprint without requiring significant new capital expenditure.
From a balance sheet perspective, this deal strengthens NFE's cash position while providing continued revenue visibility through the extended contract. The modification to eliminate incentive payments simplifies the revenue model and reduces earnings volatility, which investors typically reward with stronger valuation multiples.
NFE's long-term presence in Puerto Rico since 2017 has established them as a critical infrastructure provider in an island with ongoing energy security challenges. Their claimed
This contract extension solidifies NFE's position in Puerto Rico's energy transition landscape while opening significant growth opportunities. The 80 TBtu supply agreement is strategically important as it provides excess capacity beyond NFE's current downstream demand, specifically positioning them to capture conversion opportunities from diesel to natural gas at legacy power plants.
The timing is particularly favorable as Puerto Rico continues rebuilding and modernizing its energy infrastructure following years of instability. By working directly with Governor Gonzalez-Colon and key energy authorities, NFE has secured political buy-in that typically reduces regulatory friction for future expansion projects.
The elimination of the incentive structure in favor of a flat payment model aligns with utility-scale energy trends toward predictable pricing. This simplified commercial framework makes it easier for PREPA to budget and plan, potentially accelerating adoption of natural gas across more generation assets.
NFE's mention of "pathways to billions of dollars" in future savings signals their strategy to leverage this contract extension as a platform for more comprehensive energy infrastructure development. Converting additional power plants from diesel to natural gas offers dual benefits: it reduces emissions (strengthening the ESG case) while providing significant operational cost savings that make conversion economically compelling for cash-constrained Puerto Rico.
Under 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
This 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
“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.”
About New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The Company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the Company’s assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain statements and information that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “can,” “could,” “should,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “believes,” “schedules,” “progress,” “targets,” “budgets,” “outlook,” “trends,” “forecasts,” “projects,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” or the negative version of those words or other comparable words. Forward looking statements include our expectation regarding the extension of the gas supply contract. These forward-looking statements are necessarily estimates based upon current information and involve a number of risks, uncertainties and other factors, many of which are outside of the Company’s control. Actual results or events may differ materially from the results anticipated in these forward-looking statements. Specific factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to: risks related to the operation and maintenance of our facilities; failure of third-party contractors, equipment manufacturers, suppliers and operators to perform their obligations for the development, construction and operation of the power plant; the receipt of permits, approvals and authorizations from governmental and regulatory agencies on a timely basis or at all. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the Company’s forward-looking statements. Other known or unpredictable factors could also have material adverse effects on future results. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no duty to update or revise any forward-looking statements, even though our situation may change in the future or we may become aware of new or updated information relating to such forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in New Fortress Energy Inc.’s annual and quarterly reports filed with the Securities and Exchange Commission, which could cause its actual results to differ materially from those contained in any forward-looking statement.
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FAQ
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