Contract with New Fortress for LNG to temporary units extended to Aug. 1
- The San Juan Daily Star
- Jul 28
- 2 min read
By The Star Staff
The central government and New Fortress Energy have extended to Aug. 1 the contract for the supplying of liquefied natural gas (LNG) to 14 temporary units at the Palo Seco and San Juan electric power plants in Toa Baja and Puerto Nuevo, respectively.
The original contract, which was approved with observations by the Financial Oversight and Management Board on July 17, stems from an exigency declared by Genera PR, the private operator of the Puerto Rico Electric Power Authority generation plants, on July 16 due to an emergency need for the provision of LNG.
Genera indicated that the exigency was prompted by delays in the request for proposal process for a provider of LNG, the current reserve margin, the risk posed by the hurricane season, and the need for immediate action to alleviate and/or avoid serious harm, financial or otherwise, according to a July 25 letter from the oversight board.
The original contract has the same terms and conditions as the previous contract for the provision of LNG, which expired on July 11. It contemplates the purchase of British thermal units of LNG at a price determined by the formula (1-0.27) x diesel price/5.8. It has a maximum payable amount of $9.7 million and a term from its date of execution of July 17 to July 25, 2025 at 5 p.m.
The proposed amendment, which constitutes the first amendment to the contract, increases the maximum payable amount by $6.4 million to $16.2 million, and extends the term to Aug. 1, 2025 at 5 p.m.
Genera has certified that the expenses related to the proposed amendment constitute a passthrough expenditure with no budgetary impact, and the funds to pay for the proposed amendment are unrestricted, unobligated and available without future encumbrances or restrictions, and will not be obligated except for the payment of the proposed amendment.
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