New Fortress Energy signs a gas supply agreement with Energiza

New Fortress Energy announced on Wednesday that it had signed an agreement with Energiza for the supply of natural gas to a combined-cycle power station in San Juan, Puerto Rico. The plant will be developing a 478 megawatt combined-cycle energy plant.

This move coincides with the lifting of the ban on new export permits for liquefied gas by U.S. president Donald Trump, imposed in January 2024 by his predecessor Joe Biden.

Biden has halted all new approvals until a study is completed on the economic and environmental effects of the export boom. The study was published in December.

New Fortress Energy was granted permission by the U.S. Department of Energy in September 2024 to export LNG to countries that do not have free trade agreements from its offshore Altamira plant located in Mexico.

The company is authorized to export LNG from its Fast LNG 1 Project up to 1.4 million tons per year to non-FTA nations for a period of five years.

This will be the first power plant built in Puerto Rico in over 20 years.

Wes Edens, CEO of New Fortress, said, "This plant will provide Puerto Rico with a cleaner, more reliable and efficient source of power to replace its aging electrical system."

After the bell, shares of New Fortress Energy rose 1.7%. The company's shares, which fell nearly 60% by 2024, had lost almost 60% since then.

(source: Reuters)