New Fortress Energy Commences Operation at Puerto Rico Plant, Finalizes Rig for FLNG 1

Operation has commenced at New Fortress Energy’s (NFE) second power plant in Puerto Rico on Sept. 27, 2023—established as part of an initiative sponsored by the U.S. government. The facility in San Juan has an installed capacity of 200+ MW of power generation and is subject to a two-year operation contract, similar to NFE’s 150 MW plant in Palo Seco that became operational in June under the same government program. These plants in San Juan and Palo Seco operate under multi-year contracts with the U.S. government, having fuel, logistics, and power infrastructure completely subsidized.

"NFE is at an inflection point as our core infrastructure projects enter service,” said Wes Edens, Chairman and CEO of New Fortress Energy. “Commercial operation date of San Juan power marks a key milestone. The combination of the San Juan plant and the Palo Seco plant contribute significantly to downstream volumes and terminal earnings beginning in size in Q4 2023. Our projects are entering service after years of buildout, and we now look forward to cash generation, deleveraging, and organic growth opportunities.

“We believe these plants provide significant reliable and efficient power to the Puerto Rico power market, helping to ensure better grid reliability," Edens said.

NFE, in addition to operating a second power plant in Puerto Rico, has announced the completion and sail away of its final rig for FLNG 1: Pioneer II. On Sept. 26, the third and final rig of NFE’s FLNG 1 departed the Kiewit shipyard in Texas for Altamira, joining the two additional rigs for installation and commissioning. The targeted commercial operation date is in late October or early November of this year.