Seven-year gas supply deal is a go as Puerto Rico backs it up

December 5, 2025, by Melisa Cavcic

U.S. energy infrastructure player New Fortress Energy (NFE) has received the go-ahead for its multi-year gas supply arrangement with the government of Puerto Rico, which will allow it to provide liquefied natural gas (LNG) to the Caribbean nation.

Altamira Fast LNG 1; Source: New Fortress Energy

New Fortress Energy’s gas supply agreement (GSA), for which contract terms were agreed with the Third-Party Procurement Office (3PPO) and the Puerto Rico Public-Private Partnerships Authority (P3A), was under review for approval by the Financial Oversight and Management Board of Puerto Rico (FOMB).

With this out of the way, the U.S. player has now been given the final approval for this seven-year deal by the FOMB, which secures the delivery of approximately 75 trillion British thermal units (Btu) of natural gas per year to support the island’s ongoing energy transformation initiatives.

Wes Edens, Chairman and CEO of New Fortress Energy, commented: “This long-term partnership between Puerto Rico and NFE will greatly benefit the island. We greatly appreciate Governor González-Colón’s leadership and support during this process. Securing seven years of reliable gas supply is a major step forward for the island’s energy transition.”

This deal will see NFE supply what the firm describes as reliable, lower-emission natural gas to help enhance grid stability and support cleaner power generation across Puerto Rico’s energy system. The long-term arrangement builds on NFE’s established presence in Puerto Rico and is perceived to reflect a shared commitment to improving energy resilience throughout the region.

As the company previously disclosed, the pricing of the volumes supplied through this GSA is set at a blend of 115% of Henry Hub plus $7.95/MMBtu, excluding natural gas supplied to the units at San Juan 5 & 6, which historically consumed around 20 trillion Btu per year. The volumes are priced at 115% of Henry Hub plus $6.50/MMBtu.

The U.S. player revealed in September 2025 that these volumes were expected to be supplied from LNG produced at its Mexican 1.4 million tonnes per annum (mtpa) Fast LNG facility offshore Altamira, which reached commercial operation date (COD) in Q4 2024.