New Fortress pointed out the project will be “funded with cash on hand and funds from operations.” Both the FSRU and the gas-fired power plant are slated to start commercial operations in the second half of 2021, subject to obtaining all necessary licenses and permits.
25-year PPA in place
All electricity produced at the 300 MW plant will be sold by NFE to Nicaragua’s electricity distribution company DisNorte under a 25-year Power Purchase Agreement (PPA). The gas-fired plant will assist Nicaragua’s transition to cleaner-burning fuels while supporting the country’s economic development.
To fuel the plant, New Fortress will deploy an offshore 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 trillion British termal units (TBtu) of natural gas per year over 25 years, the equivalent of approximately 700,000 gallons of LNG (60,000 MMBtu) per day.
New supply deals
In the Caribbean, New Fortress recently signed a long-term LNG supply agreement for eight cargoes a year for 10 years through January 2030. Most cargoes are understood to head to Puerto Rico, where NFEnergía supplies regasified natural gas to two converted units at the San Juan power plant.
From its 100,000 gallons per day liquefaction and export plant in Miami, NFE produces LNG for export in intermodal ISO containers to the Caribbean and to small-scale customers in southern Florida. It operates a floating LNG import terminal in Montego Bay, Jamaica, along with a fuel-handling facility and an associated import contract in Puerto Rico.