San Juan,Puerto Rico – The Joint chiefs of Staff (JCF) has approved a contract for the delivery of liquefied natural gas (LNG) to puerto Rico,a move aimed at bolstering the island’s energy security and reliability. The approval, finalized on February 29, 2024, clears the way for New Fortress energy (NFE) to proceed with supplying LNG to the island under a previously agreed-upon agreement with the Puerto Rico Electric Power Authority (PREPA).
The contract is critical for Puerto Rico, which has long struggled with an aging and vulnerable power grid. The island’s energy infrastructure was severely damaged by Hurricane Maria in 2017,and subsequent efforts to rebuild have been hampered by financial constraints and logistical challenges. The LNG supply is intended to provide a stable and cleaner fuel source for power generation, reducing reliance on oil and diversifying the island’s energy mix. The initial contract is for a period of five years, with options for extension, and involves the delivery of approximately 1.5 million tons of LNG annually.
“This approval represents a meaningful step forward in modernizing puerto Rico’s energy infrastructure and ensuring a more resilient power supply for its citizens,” stated a JCF spokesperson. “The JCF’s role was to ensure the contract aligns with national security interests and does not impede ongoing recovery efforts.”
The agreement with NFE involves the use of a floating storage and regasification unit (FSRU) located off the coast of Puerto Rico, which will receive and process the LNG before it is fed into the island’s pipeline network. PREPA anticipates that the LNG will supply approximately 60% of the island’s electricity needs. The project has faced scrutiny from environmental groups concerned about the potential impacts of LNG infrastructure, but proponents argue that it is a necessary transition fuel as Puerto Rico moves towards renewable energy sources.