NFE Halts LNG Deliveries to Puerto Rico Over Payment Dispute

New Fortress Energy (NFE) has suspended liquefied natural gas (LNG) deliveries to Puerto Rico following a dispute with the Puerto Rico Energy Bureau (PREB). The company cited a September 30 order from PREB, which directed the Puerto Rico Electric Power Authority (PREPA) to withhold a $17.6 million payment to NFE. The order, part of a resolution on a quarterly adjustment clause, creates uncertainty over future payments for LNG supplies.

The LNG carrier Amur River was scheduled to dock on Sunday, but NFE stated it would not proceed due to the PREB’s directive. The company expressed readiness to fulfill its obligations but highlighted the need for resolution by the relevant authorities. PREPA itself has sought clarification on how to apply the order.

The dispute extends beyond payments, as the Amur River has faced docking issues for the past two weeks. The U.S. Coast Guard raised objections over the vessel’s size, which exceeds approved limits for navigational safety in San Juan Bay. The Coast Guard has requested updated navigation data from NFE to reflect the ship’s actual dimensions.

A public hearing has been scheduled for Tuesday, where the Ports Authority executive director, the San Juan Bay Pilots Association, and NFE management will testify before the House of Representatives’ Committee on Transportation and Infrastructure. The hearing aims to address the disruption in LNG supply, which has forced the San Juan Power Plant to use more expensive Bunker C diesel.