Puerto Rico energy regulators confronted Genera PR, LUMA Energy, and the Autoridad para las Alianzas Público-Privadas (AAPP) on Monday over the growing fuel crisis, which has forced the island to spend millions on diesel while accumulating millions in contractual charges for unused natural gas. The crisis, caused by an interruption in natural gas supply, has required emergency purchases of 95,000 barrels of diesel and type C fuel to keep generating units operational.
José Carrasco of Genera PR estimated the change could add approximately $14 million in costs, but the total impact is unknown due to the uncertain duration of the gas shortage. The Negociado de Energía questioned the operators about a 'structural contradiction', where Puerto Rico is paying more for diesel due to the natural gas shortage, but the contract with New Fortress Energy continues to accumulate charges for unconsumed gas.
According to the agreement, New Fortress is guaranteed payment for a minimum annual volume of natural gas, regardless of whether the fuel is delivered or used. If the electric generation system does not meet the minimum volume of 40 TBtu in a given year, the Autoridad de Energía Eléctrica (AEE) is contractually obligated to pay for that threshold.
LUMA officials estimated the resulting charge could reach $67 million at current market prices, and the total cost to consumers could exceed $80 million.