New Fortress Energy said the US territory owes it millions of dollars from past fuel shipments. — Bloomberg
NEW YORK: New Fortress Energy Inc, a struggling company founded by billionaire Wes Edens, is withholding a liquefied natural gas shipment to Puerto Rico over disputed payments, forcing the island to idle power plants.
New Fortress Energy said the US territory owes it millions of dollars from past fuel shipments.
Additionally, Puerto Rico energy czar Josue Colon said his office has no record of those debts and that the company’s move is unjustified, straining the island’s grid as demand for power surges amid summer heat.
“We have let them know that this is not acceptable to the government of Puerto Rico,” Colon said.
Ten of the island’s 14 temporary generators that help meet peak demand during summer are now shut, while the others are running on dirtier and more expensive diesel, he said.
Furthermore, the standoff is the latest escalation between the island of 3.2 million people and New Fortress Energy, which lost about 75% of its market value in the last year as it struggles to shore up its finances and reassure investors and bondholders.
The company told Colon on July 12 that the Puerto Rico Electric Power Authority owes it more than US$9mil, plus US$3mil in interest, from gas deliveries in 2020, according to a letter reviewed by Bloomberg. — Bloomberg
