Jamaica Power Utility Sues New Fortress Energy Over $40 Million Fuel Dispute
The Jamaica Public Service Company (JPS) and New Fortress Energy (NFE) are locked in arbitration over a fuel-supply dispute worth around US$40 million. The disagreement centers on infrastructure changes at Montego Freeport, which disrupted deliveries from NFE's liquefied natural gas terminal in 2024.
JPS has initiated proceedings claiming damages of approximately US$32.9 million for the cost of using alternative fuel after the disruption. In response, NFE asserted force majeure, an unforeseeable event, under its supply contract and filed a counterclaim of US$7.2 million.
The arbitration will also set a marker for how force majeure clauses are interpreted in Jamaica's energy supply contracts. JPS operates under a regulated fuel-cost pass-through, meaning any increase in fuel costs flows into light bills.