New Fortress Energy signs long-term LNG supply deal as it advances Caribbean activities

Monday, 10 February 2020
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New Fortress Energy, the owner of LNG facilities in Florida and in Jamaica and projects in Puerto Rico and the US northeast, said it signed a long-term LNG supply agreement for eight cargoes a year for 10 years through January 2030.

The New Fortress company is led by Wes Edens, co-founder of the private equity group Fortress Investment.

“This agreement will support the continued growth of New Fortress’ customer base in international markets as the company develops LNG terminals and natural gas infrastructure,” said the company without disclosing who the seller was.

New Fortress made its debut on the Nasdaq global exchange in January 2019 after an initial public offering. 

Its main corporate focus now is introducing LNG to markets that lack access to the fuel.

“This agreement supports our efforts to spur economic growth and reduce emissions as we deliver more affordable and cleaner energy to our customers,” said New Fortress Chairman and CEO Edens. 

“We evaluated a broad range of competitive offers to meet the expansion of our LNG terminals across international markets,” he added.

“We’re pleased to take advantage of the dislocation in global LNG markets and secure 10 years of offtake for our growing business,” stated the CEO.

In addition to its 100,000 gallons per day liquefaction plant in Miami, it operates a floating LNG terminal in Montego Bay, Jamaica, along with a fuel-handling facility and an associated contract in the US territory of Puerto Rico.

The New Fortress Puerto Rico subsidiary, NFEnergía, has entered into a contract with the Puerto Rico Electric Power Authority for the supply of natural gas and conversion of two out of six units at the San Juan combined-cycle power plant. The initial term of the contract is five years.

The Miami facility began operations in April 2016 and enables the company to produce LNG for export in intermodal ISO containers to the Caribbean and to small-scale customers in southern Florida.

The company is also looking at developing a Pennsylvania LNG distribution facility.

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