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Bay pilots sue New Fortress Energy over replacement of tugboats

  • Writer: The San Juan Daily Star
    The San Juan Daily Star
  • 2 days ago
  • 3 min read
A legal filing by the San Juan Bay Pilots Corporation contends that New Fortress Energy’s decision to terminate its contract with Edison Chouest Offshore, the owner of the specialized tugboats used to guide LNG tanker ships in San Juan Bay, and to replace them with local vessels lacking crucial validation studies is both irresponsible and unacceptable. (Facebook via U.S. Coast Guard Sector San Juan)
A legal filing by the San Juan Bay Pilots Corporation contends that New Fortress Energy’s decision to terminate its contract with Edison Chouest Offshore, the owner of the specialized tugboats used to guide LNG tanker ships in San Juan Bay, and to replace them with local vessels lacking crucial validation studies is both irresponsible and unacceptable. (Facebook via U.S. Coast Guard Sector San Juan)

By THE STAR STAFF


San Juan Bay Pilots have filed a lawsuit in federal court to confront what they identify as a critical threat to maritime safety and the well-being of coastal communities: New Fortress Energy’s (NFE) reckless decision to eliminate the specialized tugboats essential for guiding large liquefied natural gas (LNG) tanker vessels into the bay.


The plaintiffs, organized as the San Juan Bay Pilots Corporation, are positioning their legal challenge against NFE, its subsidiary NF Energía, and the Puerto Rico Pilotage Commission, claiming that the company’s plan to replace the specialized tugs with smaller-capacity vessels poses significant dangers and violates legal standards.


The legal complaint, filed last Sunday, cites two years of technical simulations conducted in Texas, along with formal agreements with NFE, establishing that the enormous gas tankers -- which are capable of carrying up to 155,000 cubic meters of LNG -- can only be safely maneuvered using four tugs rated for an 80-ton bollard pull. Since March, pilots have successfully conducted 18 maneuvers with this reliable equipment. However, NFE’s announcement to terminate its contract with Edison Chouest Offshore, the owner of the specialized tugboats, and to replace them with local vessels lacking crucial validation studies is both irresponsible and unacceptable. Seven out of eight active pilots have opposed the decision in writing, while only one pilot has agreed to continue the maneuvers under the new and inadequate conditions, the pilots corporation said.


In an attempt to silence dissent, Jessica Ñeco Morales, the acting president of the Pilotage Commission, issued a “cease and desist” order barring the pilots from publicly voicing their legitimate concerns. The pilots group said such blatant censorship is a violation of due process, and the plaintiffs are demanding that the court intervene. They seek an immediate order to prohibit the removal of the specialized tugboats until a validated alternative is provided through technical simulations. They further insist that the court declare the gag order null and void and uphold the principle of fair revenue distribution among all pilots.


The legal battle is occurring in conjunction with escalating opposition from local communities and environmental organizations against the expansion of methane gas use in Puerto Rico. In April, residents from San Juan, Cataño and Guaynabo protested the entry of the LNG tanker Gaslog Singapore, which, at 155,000 cubic meters, is five times larger than previous vessels managed by NFE. Environmental lawyer Pedro Saadé has issued a stark warning, pointing out that the Federal Energy Regulatory Commission based its risk assessments on much smaller vessels.


“This means that there are many more residential and commercial areas exposed to risk, and there are no safety or evacuation plans in place,” Saadé said.


On top of the legal and community challenges, there is a critical economic issue at play. On Aug. 29, the Financial Oversight and Management Board hastily approved the sixth amendment to the temporary LNG supply contract between Genera PR and NF Energía, increasing the spending cap to $48.04 million and extending the contract’s validity until Sept. 5. That amendment marks the sixth revision in just over a month -- a marked increase from an initial cap of $9.79 million to the current figure, the bay pilots group noted. Meanwhile, the 15-year contract worth some $20 billion remains on hold after being halted by the oversight board in July due to its risky, opaque and monopolistic conditions.

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