Puerto Rico Oversight Board Conditionally Approves revised LNG Supply Agreement
San Juan, Puerto Rico – The Financial Oversight and Management Board for Puerto Rico (FOMB) has granted conditional approval to a revised liquefied natural gas (LNG) supply agreement between the Puerto Rico Electric Power Authority (PREPA), the Public-private Partnerships Authority (P3A), and NFEnergía LLC, an affiliate of New Fortress energy Inc. (Nasdaq: NFE).
The FOMB announced on November 28, 2025, that the updated contract addresses nearly all previously identified deficiencies and is projected to yield over $4 billion in fuel-cost savings throughout the agreement’s duration. Approval hinges on fulfilling specific requirements, including securing a bilateral tolling agreement with a qualified third-party LNG supplier and revising the LNG Tolling Term Sheet.
The Board also mandated a government evaluation of the Ports Authority lease governing access to the puerto nuevo LNG terminal, originally established following NFE’s $100 million investment in rehabilitating the previously non-operational facility. Any modifications to terminal access will require assessment under applicable legal and contractual frameworks.
Local digital newspaper INDIARIO highlighted the FOMB’s focus on strengthening contractual safeguards while acknowledging continued concerns about Puerto Rico’s dependence on a single LNG import point.
MZLS LLC, a full-service law firm with offices in San Juan and Washington, D.C., has published a detailed analysis of the decision and its implications for Puerto Rico’s energy sector, available at https://www.mzls.com/insights/oversight-board-conditionally-approves-lng-contract-with-nfe-calls-for-further-review-of-terminal-access-framework.
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Carmen A. Zayas
MZLS LLC
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