New Fortress Energy announced that Puerto Rican regulators have granted conditional approval for a seven‑year liquefied natural gas supply agreement worth approximately $3.2 billion, a deal that will provide the company with a stable, long‑term revenue stream and help offset its high debt load.
The approval follows a period of financial strain for NFE, which reported a $327.4 million revenue decline and a $293.4 million net loss in the third quarter of 2025, compared with $567.5 million and a $557 million loss in the same quarter a year earlier. The new contract is expected to generate recurring cash flows that can be used to service debt and support the company’s deleveraging strategy.
The conditional approval is subject to several requirements, including the revision of the LNG tolling term sheet, the establishment of competitive open‑port access to San Juan generation facilities, and the arrangement of a third‑party supplier as a contingency. Once these conditions are met, NFE can finalize the technical and commercial terms and begin delivering LNG from its Fast LNG facility in Altamira, Mexico.
Wes Edens, Chairman and CEO, said the agreement “provides security of supply for Puerto Rico’s LNG‑powered plants for the next seven years and enables the conversion of diesel‑burning plants to cleaner fuel, saving the island hundreds of millions of dollars.” CFO Chris Guinta added that “matching LNG production with long‑term offtake locks in sustainable margins and provides a foundation of financial stability.”
Investors welcomed the news, citing the deal’s potential to stabilize cash flow and improve NFE’s balance sheet. The approval also aligns with Puerto Rico’s broader strategy to transition from expensive liquid fuels to cleaner natural gas, reinforcing NFE’s gas‑to‑power strategy and positioning the company as a key LNG supplier in the Caribbean.
The contract represents a critical lifeline for NFE, offering a substantial revenue source amid ongoing debt challenges and operational headwinds. By securing a long‑term, regulated supply agreement, the company can better manage its capital structure, support future expansion, and contribute to Puerto Rico’s energy reliability and affordability goals.
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