New Fortress Energy Extends Islandwide Gas Supply Contract in Puerto Rico

New Fortress Energy Inc. (NASDAQ: NFE) has announced a significant extension of its islandwide gas supply contract with the Puerto Rico Electric Power Authority (PREPA). This strategic move will not only strengthen the company's foothold in the Puerto Rican energy market but also contribute to the island's energy security and reliability. The extension, which runs until 2028, ensures a stable and reliable fuel source for Puerto Rico's power plants, providing predictability and security for both parties.

The extended gas supply contract is a testament to New Fortress Energy's commitment to enhancing Puerto Rico's energy infrastructure. The company has invested heavily in the island's energy sector, constructing emergency power plants and selling them to PREPA for $373 million in cash. These plants have become a cornerstone of Puerto Rico's energy portfolio, delivering critical baseload power and stabilizing the grid in the aftermath of natural disasters. The extended gas supply contract offers pathways to billions of dollars of potential savings in the future, further solidifying New Fortress Energy's position as a key player in Puerto Rico's energy landscape.

In addition to the extended gas supply contract, New Fortress Energy has entered into a 20-year gas supply agreement with Energiza for a new 478 MW combined-cycle power plant in San Juan, Puerto Rico. This partnership represents a strategic expansion of New Fortress Energy's gas supply operations in the Caribbean region and demonstrates the company's commitment to helping Puerto Rico achieve its energy transition goals. The new power plant, which is expected to commence operations in 2028, will serve as a much-needed cleaner, reliable, and efficient power source to enhance Puerto Rico's aging power system.

The extension of the islandwide gas supply contract and the partnership with Energiza highlight New Fortress Energy's strategic approach to the Puerto Rican energy market. By providing natural gas as a cleaner fuel alternative to diesel, the company is not only helping Puerto Rico reduce its emissions but also contributing to the island's energy security and reliability. The long-term nature of these contracts ensures a steady revenue stream for New Fortress Energy, while the potential cost savings and emission reductions offer significant benefits to Puerto Rico.

As Puerto Rico continues its energy transition, New Fortress Energy's extended gas supply contract and partnership with Energiza position the company to potentially capture more market share. The strategic implications of these agreements are clear: New Fortress Energy is committed to enhancing Puerto Rico's energy security and reliability while aligning with the company's broader business strategy of addressing energy poverty and accelerating the world's transition to reliable, affordable, and clean energy.

In conclusion, New Fortress Energy's extension of the islandwide gas supply contract in Puerto Rico is a strategic move that strengthens the company's position in the Puerto Rican energy market and contributes to the island's energy security and reliability. By providing natural gas as a cleaner fuel alternative to diesel, New Fortress Energy is helping Puerto Rico reduce its emissions and achieve its energy transition goals. The long-term nature of these contracts ensures a steady revenue stream for the company, while the potential cost savings and emission reductions offer significant benefits to Puerto Rico. As Puerto Rico continues its energy transition, New Fortress Energy is well-positioned to capture more market share and support the island's energy goals.