New Fortress Energy's Gas Supply Agreement: A Boon for Puerto Rico's Energy Transition

The agreement between NFE and Energiza is a strategic win for both parties and a significant milestone in Puerto Rico's energy transition. The long-term partnership will greatly benefit the island by providing a cleaner, reliable, and efficient power source to enhance its aging power system. Wes Edens, Chairman and CEO of New Fortress Energy, expressed his excitement about the partnership, stating, "This power plant will serve as a much-needed cleaner, reliable, and efficient power source to enhance Puerto Rico’s aging power system."

The new power plant will not only modernize Puerto Rico's aging power infrastructure but also support the island's energy transition by enabling the conversion of other plants on the island from diesel to gas. The expanded volumes under the new contract will facilitate this conversion, providing lower cost, cleaner energy to Puerto Rico. This shift will significantly impact the island's energy security, cost reduction, and environmental impact.

The conversion of plants from diesel to gas will enhance Puerto Rico's energy security by ensuring a more reliable and stable power supply, reducing the risk of outages and blackouts. This is particularly important for an island that has faced significant reliability challenges in its power system. Additionally, the increased availability of natural gas will lead to lower electricity costs for consumers and businesses, as natural gas is generally less expensive than diesel. This cost reduction will be a significant benefit, especially for a territory that has faced economic challenges and high electricity prices.

Moreover, the conversion of plants to gas will result in lower emissions of pollutants such as nitrogen oxides (NOx) and particulate matter (PM), which contribute to air pollution and health issues. By reducing its carbon footprint and improving air quality, Puerto Rico can benefit both the environment and public health. This aligns with the island's energy transformation goals, as outlined in its Integrated Resource Plan (IRP) and public energy policy, which aim to integrate renewable energy sources and reduce reliance on fossil fuels.

In conclusion, New Fortress Energy's gas supply agreement with Energiza is a strategic move that will significantly impact Puerto Rico's energy landscape. The new power plant will modernize the island's aging power infrastructure, enhance energy security, reduce costs, and improve environmental quality. As Puerto Rico continues its energy transition, this contract positions NFE to potentially capture more market share and strengthen its foothold in the region. The agreement demonstrates NFE's commitment to Puerto Rico's energy security and cost reduction efforts, further enhancing its reputation and market position on the island.