New Fortress Energy sells Puerto Rico power plants

New Fortress Energy (NFE) said March 18 it had sold two gas-fired power plants in Puerto Rico to the Puerto Rico Electric Power Authority (PREPA) for $373mn.

The plants, in San Juan and Palo Seco, were developed in 2023 on behalf of the US Army Corps of Engineers in order to provide emergency power and to stabilise the Puerto Rico power grid. Terms of the agreement with the Corps contemplated their eventual transfer to PREPA.

In addition to the sale of the power plants, NFE said after a competitive bidding process it had been awarded and had entered into a new island-wide contract with PREPA to supply 80 TBtu of gas to the two power plants for up to four years. The expanded volumes under the contract will also enable the conversion of other plants in Puerto Rico from diesel to natural gas.

“We entered the Puerto Rico market in 2017 based on the island’s emergency need for natural gas and power,” NFE CEO Wes Edens said. “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.”