Puerto Rico Pays US$1.25 Million a Day for Gas Delay

Puerto Rico's Public-Private Partnerships Authority (AAPP) and gas supplier New Fortress Energy are facing a costly gas delivery delay at the Central San Juan power plant. This halt in gas supply, caused by issues with the Amur River tanker, is costing the territory approximately US$1.25 million per day in additional diesel fuel, according to preliminary estimates from the AAPP. The total estimated cost since September 16 exceeds US$27.5 million.

The stoppage occurred on September 16 when the Amur River, carrying New Fortress's liquefied natural gas (LNG), was unable to unload its cargo at the plant. As a result, units 5 and 6 of the Central San Juan power plant have been running on diesel since then. On October 8, the AAPP ordered a formal claim against New Fortress for the undelivered gas, citing a "deliver or pay" clause in the gas purchase agreement.

Governor Jenniffer González Colón has also filed a lawsuit against New Fortress Energy LLC, a subsidiary of the supplier, seeking a temporary restraining order and preliminary injunction. The case is based on Section 22.12 of the gas purchase agreement, which allows for the use of another supplier's terminal when the original supplier cannot deliver.

New Fortress has raised concerns over the dimensions of the Amur River relative to the 2025 waterway suitability assessment, and the Puerto Rico Energy Bureau has added uncertainty about payments for gas supplied under the contract. The federal judge Silvia Carreño Coll has set conditions for the Amur River's transit, but the outcome of the governor's lawsuit is still unknown.