Shares of New Fortress Energy (NASDAQ:NFE) jumped 36% following a report by El Nuevo Día revealing that the company has locked in a 15-year agreement to deliver liquefied natural gas (LNG) to several power plants.
The energy infrastructure firm, partnered with Crowley, was chosen to supply natural gas to five power generation sites and new rapid response units throughout Puerto Rico, according to the Puerto Rican newspaper. Under the contract, New Fortress Energy will provide fuel to the San Juan and Palo Seco power plants over the 15-year period, with the possibility of extending service to the Aguirre plant and Cambalache station pending planned natural gas conversions.
In addition, NFE will fuel eight peaking power units currently being installed by its subsidiary, Genera PR, at multiple locations including Costa Sur, Daguao, Yabucoa, and Jobos.
This long-term contract secures a reliable revenue source for New Fortress Energy over the next decade and a half, solidifying its presence in the Caribbean energy sector. The deal marks a significant expansion of the company’s role within Puerto Rico’s energy infrastructure landscape.
Final approvals for the contracts are anticipated in the upcoming weeks, officially confirming New Fortress Energy as a major energy supplier for Puerto Rico’s power facilities.