New Fortress Energy Signs 25-Year Agreement for 300 MW Gas Power Plant

New Fortress Energy release

NEW YORK--(BUSINESS WIRE)--Feb. 17, 2020-- New Fortress Energy LLC (NASDAQ: NFE) (“New Fortress”) announced today that it has signed a 25-year Power Purchase Agreement (the “PPA”) with Distribuidora de Electricidad del Norte, S.A. (“DisNorte”) and Distribuidora de Electricidad del Sur, S.A. (“DisSur”), Nicaragua’s electricity distribution companies.

As part of the agreement, New Fortress will construct a natural gas-fired power plant with a capacity of approximately 300 megawatts near Puerto Sandino to supply power to Nicaragua’s national electric grid. The plant is expected to contribute to the advancement of the country’s long-term economic development while also assisting the transition to lower-carbon, more environmentally friendly energy sources.

New Fortress will supply natural gas to the plant via an offshore liquefied natural gas (LNG) receiving, storage and regasification terminal off the coast of Puerto Sandino. Under the terms of the PPA, New Fortress is expected to provide more than 21 TBtu of natural gas per year over 25 years, the equivalent of approximately 700,000 gallons of LNG (60,000 MMBtu) per day.

The project is expected to be funded with cash on hand and funds from operations. The terminal and the plant are anticipated to begin commercial operations in the second half of 2021, subject to various conditions, including obtaining required licenses and permits.