HomeNewsPuerto Rico ends $20-B LNG contract talks with New Fortress Energy

Puerto Rico ends $20-B LNG contract talks with New Fortress Energy

7/24/2025

Puerto Rico is ending talks to negotiate a $20-B liquefied natural gas (LNG) contract with New Fortress Energy, media reported on Wednesday, citing a negotiator.

New Fortress was unwilling to discuss changes to the contract and missed a key deadline, the report said, citing Osvaldo Linares, president of Recoms Group, the island's third-party procurement office.

Shares of New Fortress closed more than 6% lower. The stock has declined more than 74% in the past six months.

The U.S. energy firm has been struggling to secure LNG for its power-generation operations on long-term agreements. The company is trying to raise cash and improve its finances by taking on partners for its primary businesses and selling some assets following its deferral of a shareholder dividend last year (learn more).

Linares and New Fortress Energy did not immediately respond to requests for comment.

Earlier this month, it was reported that Puerto Rico's financial watchdog had halted the supply deal over monopoly concerns.

As a result of the talks ending, Puerto Rico's government is now in discussions with four other companies to provide LNG to the island under 30-day emergency contracts, a report said on Wednesday.

Linares said his agency has sent a formal communication to Puerto Rico's oversight board saying negotiations had ended.

A spokesperson for the Financial Oversight and Management Board of Puerto Rico confirmed the receipt of the letter.

The letter was consistent with the watchdog's observations that neither the third-party procurement office nor the government was willing to defend the terms of the contract which had been initially submitted for review in June, the spokesperson added.

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