The Puerto Rico Electric Power Authority (AEE) has filed a lawsuit in federal court against New Fortress Energy Inc. and its subsidiaries, seeking over $54 million in damages for alleged breaches of natural gas supply contracts. The lawsuit, filed on June 30, claims that New Fortress Energy failed to deliver the agreed-upon quantities of liquefied natural gas (LNG) between October 2024 and October 2025, forcing the AEE to use more expensive diesel fuel to operate power generation facilities, resulting in $54,962,030.66 in additional costs.
The lawsuit alleges that New Fortress Energy's supply deficiencies were due to operational decisions rather than unforeseen events
The lawsuit includes claims for breach of contract, money owed, and damages, and seeks a declaratory judgment that New Fortress Energy's defenses do not exempt it from its contractual obligations. The dispute centers on three agreements: the 2019 Fuel Purchase Agreement (FSPA) for the San Juan Central power plant, the 2024 Natural Gas Purchase Agreement (NGSPA) for temporary power generation facilities in San Juan and Palo Seco, and an emergency energy contract signed in July 2025.
The AEE attributes $12.8 million of the claimed amount to the NGSPA, $34.5 million to the FSPA, and $7.5 million to the emergency energy contract. The lawsuit alleges that New Fortress Energy's supply deficiencies were due to operational decisions rather than unforeseen events, and that the company was aware of the operational limitations of the San Juan port since 2018 but still chose to use incompatible LNG vessels.