Puerto Rico’s government is evaluating whether to cancel its natural gas supply contract with New Fortress Energy (NFE) over alleged patterns of contract breaches, it emerged at a public hearing before the House of Representatives’ Transportation and Infrastructure Committee. Osvaldo Carlo Linares, a lawyer and president of the Independent Procurement Office (3PPO), confirmed cancellation is among the options.
He said the government could also deduct amounts it owes the company from payments. Carlo Linares said NFE "has not been a good business partner" and has a "very clear" pattern of using the gas-supply vessels to force government decisions in its favor. He also stressed NFE’s noncompliance with court orders setting which vessel type may enter the San Juan dock; the Amur River was not one of them.
The review follows controversy over the Amur River’s entry into San Juan Bay, which caused natural gas supply interruptions lasting more than a month and forced costlier alternatives. Diesel purchases would mean an added cost of $15 million to $16 million. Energy czar Josué Colón said authorities are examining whether the disputes are isolated incidents or a recurring pattern of breaching specific contract clauses.
Meanwhile, 3PPO amended its federal court suit against NFE, raising its claim from nearly $55 million to $100 million for extra fuel costs. Energy Bureau president Edison Avilés Deliz said the claimed costs have not been passed to customers’ bills, but avoiding that depends on the court outcome. NFE skipped the committee’s summons for the third time under House Resolution 97 and did not respond to El Nuevo Día.