Photo: Image courtesy of New Fortress Energy

New Fortress Energy to convert San Juan plant to natural gas

New Fortress Energy to convert San Juan plant to natural gas
Image courtesy of New Fortress Energy

New York City-based New Fortress Energy said its Puerto Rico unit NFEnergía signed a deal with the Puerto Rico Electric Power Authority (PREPA) for the supply of natural gas and conversion of Units 5 and 6 of the San Juan power plant.

The initial term of the contract is five years, with options for PREPA to extend for three additional five-year periods, New Fortress Energy said.

PREPA estimates that the conversion of these units from diesel to natural gas will generate an estimated $750 million in fuel cost savings over five years for PREPA and significantly reduce emissions.

After multiple conversion attempts over the past ten years, PREPA launched a competitive request for proposal (RFP) bid process in July 2018 for the supply of fuel and the conversion of San Juan power plant’s Units 5 and 6.

NFEnergía will supply natural gas to the power plant from its micro fuel-handling facility in the Port of San Juan, which has been under development for more than a year. The facility is being constructed with multiple truck loading bays to provide liquefied natural gas to on-island industrial customers and microgrids.

The conversion of San Juan Units 5 and 6 and the development of the micro fuel handling facility are anticipated to be complete by mid- 2019.