Puerto Rico State Power Company Sues Private LNG Supplier for Breach of Contract
The state power company claims lack of timely LNG deliveries cost it $55 million in diesel fuel costs.
The Puerto Rico Electric Power Authority (PREPA) sued its liquid natural gas (LNG) provider New Fortress Energy (NFE) for alleged breach of contract, according to court documents reviewed by Heavy Weather. PREPA alleges that NFE failed to meet LNG supply agreements between October 2024 and October 2025, which forced generation facilities to operate on more expensive diesel fuel that cost the state power company nearly $55 million.
The federal complaint filed today by PREPA alleges that NFE invoked force majeure claims three separate times to excuse LNG delivery shortfalls, citing regulatory and operational disruptions. PREPA alleges that these events were self-inflicted due to NFE's own operational negligence and regulatory non-compliance.
"NFE's delivery failures did not arise from any genuinely unforeseeable or external cause. They originated from NFE's own operational negligence and regulatory non-compliance," reads the complaint.
