The country’s Financial Oversight and Management Board has expressed “profound concerns” over a proposed 15-year contract.Puerto Rico’s finance watchdog has declined to approve a $20bn supply agreement between New Fortress Energy and its subsidiary over concerns of a potential monopoly in the natural gas sector, reported Bloomberg, citing sources.The Financial Oversight and Management Board for Puerto Rico has expressed “profound concerns” regarding a proposed 15-year contract between New Fortress Energy’s subsidiary Genera, which operates the territory’s power plants, and the company’s unit responsible for delivering liquefied natural gas (LNG).The board was quoted as saying: “Approving the contract would lock the island into a long-term commitment with a single supplier, potentially undermining market competition and limiting flexibility.“Given the magnitude of the proposed contract and the critical nature of the services at stake, it would be irresponsible for the Oversight Board to review the proposed contract thoroughly in this short time.”
Nonetheless, the board expressed its readiness to engage with all parties to guarantee that the transaction is financially prudent.
New Fortress Energy operates an LNG facility at the Port of San Juan, which was commissioned in April 2020.
