House measure seeks cancellation of NFE contracts in PR
By THE STAR STAFF
Rep. José Aponte Hernández has introduced legislation directing government agencies to begin the immediate legal and administrative process of terminating contracts held by New Fortress Energy (NFE) subsidiary NFEnergia LLC for the supply of natural gas and the company’s exclusive use of key port facilities in San Juan Bay.
Aponte, a former speaker of the Puerto Rico House of Representatives, filed Joint Resolution 428, which would order the Puerto Rico Electric Power Authority (PREPA), the Public-Private Partnerships Authority, the Ports Authority and other relevant government entities to pursue the cancellation of agreements with NFE. The contracts cover the supply of liquefied natural gas (LNG) for power generation and exclusive rights to use Piers A and B in San Juan’s Puerto Nuevo port sector.
In the measure’s preamble, Aponte alleges that NFE has repeatedly failed to comply with its contractual obligations related to the delivery of natural gas needed for electricity generation across the island.
The legislator cited a July 2025 incident in which the entry of an LNG vessel destined for San Juan generating units was interrupted, delaying the scheduled delivery of fuel. He also pointed to more recent disputes involving LNG shipments, alleging that the company used tactics that again postponed fuel deliveries for several weeks, resulting in operational challenges for Puerto Rico’s power system.
According to the resolution, delays in natural-gas deliveries forced PREPA to rely on alternative fuels such as diesel to maintain electricity generation. Diesel is significantly more expensive than natural gas, and Aponte argues that the added costs ultimately impact public finances and are passed on to consumers through electricity rate adjustments.
The measure also raises concerns regarding NFE’s operations at Piers A and B, facilities the company uses to unload LNG under an exclusivity agreement with the Ports Authority. Aponte noted reports that the company began operations at those facilities without obtaining all required approvals from federal regulatory agencies, including the Federal Energy Regulatory Commission, a process he said remains incomplete.
The resolution further highlights what Aponte describes as the concentrated role of NFE affiliates in Puerto Rico’s energy infrastructure, including their involvement with Genera PR, the private operator responsible for managing PREPA’s thermal generation fleet.
“Given this pattern of contractual noncompliance, operational vulnerability and risks to the reliability of the electric system, it is imperative that the Government of Puerto Rico take the necessary steps to protect the public interest and guarantee service continuity,” Aponte said in the measure.
He argued that depending on a single fuel supplier that has repeatedly failed to meet its contractual commitments poses an unacceptable risk to the island’s energy security.
The filing of the resolution comes amid ongoing controversy surrounding LNG deliveries, fuel supply disputes and the island’s reliance on natural gas for power generation. Any attempt to terminate the contracts would likely face significant legal and regulatory scrutiny and could have major implications for Puerto Rico’s energy sector, which continues to grapple with reliability challenges and high electricity costs.
The resolution will now be considered by the House as lawmakers debate the future of the island’s fuel supply arrangements and broader energy policy.
