New Fortress Energy (NFE) chief executive Zak Ahmed told the Puerto Rico House of Representatives’ Transportation and Infrastructure Committee on Thursday that his company does not operate a monopoly over natural gas supply in Puerto Rico. Professor Ángel Rosa described the hearing at the Capitol. Ahmed appeared after evading earlier committee subpoenas by saying he was in New York, Rosa said.
"That clause is almost impossible to activate,"
At the start, a translation problem arose because Ahmed does not speak Spanish, and his lawyer asked to halt the proceedings until the interpreter issue was resolved. A source at the hearing told Rosa the person who ended up interpreting was a Capitol tour guide, a detail Rosa could not independently verify. Ahmed argued the contract lets the Puerto Rico Electric Power Authority bring in another supplier through a clause.
Rosa disputed this: "That clause is almost impossible to activate," noting a federal court rejected the government’s earlier attempt to use it, finding the contract one-sided. Ahmed also could not say when a new natural gas shipment would arrive once the supply from the barge that docked in early October runs out, according to Rosa.
Rosa explained that plants lacking gas must burn costlier diesel, and the extra cost passes to electric rates through fuel adjustments. He said the root problem is contractual, claiming NFE holds a monopoly on fuel entry and on operating generation plants that belonged to the Electric Power Authority. He urged the Legislature to amend the contract by law, anticipating NFE would go to court citing constitutional protection of contractual obligations.