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Critics blast natural gas supply contract between New Fortress, Energiza

Writer's picture: The San Juan Daily StarThe San Juan Daily Star


Ángel Figueroa Jaramillo, former president of the Union of Electrical and Irrigation Industry Workers
Ángel Figueroa Jaramillo, former president of the Union of Electrical and Irrigation Industry Workers

By The Star Staff


New Fortress Energy Inc. (NFE) on Thursday announced the execution of a 20-year gas supply agreement with Energiza to provide natural gas to a 478 megawatt combined-cycle power plant to be developed in San Juan.


Critics say the announcement means the law demanding the island to draw its energy from renewables by 2050 is going up in smoke.


The proposed natural gas plant, which is being developed as a public-private partnership, is adjacent to NFE’s existing San Juan LNG import terminal. New Fortress is the parent company of Genera PR, which is the private operator of the island’s legacy power plants.


The Energiza power plant will be the first power plant constructed in Puerto Rico since 1995 and is expected to commence operations in 2028.


“The long-term partnership between Energiza and NFE will greatly benefit Puerto Rico and we’re excited to be part of this historic milestone,” said Wes Edens, NFE chairman and CEO. “This power plant will serve as a much-needed cleaner, reliable, and efficient power source to enhance Puerto Rico’s aging power system.


After the details of the contract became known, the former president of the Union of Electrical and Irrigation Industry Workers, Ángel Figueroa Jaramillo, said it is “a joke” that does not guarantee the transition to renewable energy.


Figueroa Jaramillo said the contract for the plant’s construction extends for two decades with Energiza, while the contract regarding gas purchase extends for three decades with New Fortress.


Likewise, Figueroa Jaramillo criticized the actions of the Puerto Rico Energy Bureau, since, even though in the past it did not allow the Puerto Rico Electric Power Authority to use methane gas because it did not comply with the energy policy that was planned for the future, now it is seeking to approve the contracts allowing Energiza to operate its plant with natural gas, which is also not a viable option.


Then-Gov. Pedro Pierluisi Urrutia, along with then-Puerto Rico Public-Private Partnerships Authority Interim Executive Director Gerardo Lorán Butrón, announced in December the selection of Energiza for the design, development, financing, construction, installation, operation and maintenance of the power plant.


Energiza is made up of the Puerto Rican companies Tropigas de Puerto Rico Inc. and Cratos Project Services PR LLC, and also has Mitsubishi Américas Power Inc. and NAES Corp. as part of its team.

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