The Financial Oversight and Management Board for Puerto Rico warned that New Fortress Energy’s failure to deliver natural gas to the Puerto Rico Electric Power Authority (PREPA (AEE), or PREPA) threatens the certified fiscal plans and the island’s economic recovery. The warning appears in an urgent motion the Board filed Friday in the U.S. District Court for the District of Puerto Rico, asking to intervene as a plaintiff in PREPA’s suit against NFEnergía, New Fortress Energy and Atlantic Energy Holdings.
have turned its tolling obligation into a fiction
The Board said the continued breach of the gas sale and purchase agreement threatens the fiscal plans, which are under its exclusive authority, and that NFE’s actions "have turned its tolling obligation into a fiction." Tolling is the mechanism requiring New Fortress to let other suppliers deliver gas through its San Juan terminal when it fails to deliver.
The Board argued a ruling for New Fortress would have a long-term impact on securing reliable liquefied natural gas supply and could affect economic recovery, noting natural gas generates power at lower cost than diesel. It cited PREPA’s fiscal plan certified in February 2025, which bets on switching from diesel to gas for long-term savings.
If admitted, the Board will support PREPA’s request for a preliminary injunction, declaratory judgment and specific performance, and will seek remedies to prevent repeat conduct. On Friday, Judge Pedro A. Delgado Hernández issued a temporary restraining order barring NFEnergía from obstructing other suppliers’ gas entry, requiring it to disclose the Amur River vessel’s inventory and the next cargo’s estimated arrival date, and giving it 72 hours to submit its procedures for receiving third-party gas.