New York City-based New Fortress Energy has signed a 25-year power purchase agreement with Distribuidora de Electricidad del Norte and Distribuidora de Electricidad del Sur, Nicaragua’s electricity distribution companies.
As part of the agreement, New Fortress will construct a natural gas-fired power plant with a capacity of approximately 300 megawatts near Puerto Sandino to supply power to Nicaragua’s national electric grid.
New Fortress will supply natural gas to the plant via an offshore liquefied natural gas (LNG) receiving, storage and regasification terminal off the coast of Puerto Sandino.
Under the terms of the PPA, New Fortress is expected to provide more than 21 TBtu of natural gas per year over 25 years, the equivalent of approximately 700,000 gallons of LNG (60,000 MMBtu) per day.
The project is expected to be funded with cash on hand and funds from operations. The terminal and the plant are anticipated to begin commercial operations in the second half of 2021.