Naturgy extends Puerto Rico LNG supply deal

Spain’s Naturgy has secured a contract extension for long-term LNG supply to Puerto Rico Electric Power Authority.

Previously set to expire in October 2020, the duo now extended the contract until 2032 ensuring the supply of power generation plants in Puerto Rico.

According to Naturgy, the deal covers an annual volume of 2 bcm. But it could also reach 3 bcm depending on the country’s needs.

Furthermore, Naturgy will use the US Henry Hub as the main index for the contracted price. The previous contract included an annual volume of 1.5 bcm with the price linked to oil and the Henry Hub.

The Spanish firm will deliver LNG from its portfolio of contracts. Naturgy says this would help reduce exposure to unsold volumes in the long term and bring purchase and sale prices into line.

Thus, over 50% of Naturgy’s American LNG procurement will be purchased and sold at the same price index and for a period of over 10 years, which mitigates risks and guarantees margin, the firm said.

At the same time, the duo reached another agreement to allow GPG to extend the current power purchase agreement until 2032. Naturgy holds a 75% stake in GPG through its investee company EcoElectrica.

“These agreements represent a significant step forward in Naturgy’s strategy to reduce the volatility and risks of our businesses, as they ensure a stable, long-term margin, both for the supply of LNG to Puerto Rico and for power generation thorough a 530-MV combined cycle, which supplies over 20% of the island’s electricity”, said Naturgy’s Chairman, Francisco Reynés.

Most Popular

Venture Global adds more liquefaction blocks to Plaquemines expansion

US LNG exporter Venture Global LNG has added four more liquefaction blocks to the proposed brownfield expansion of its Plaquemines LNG terminal in Louisiana.

Fluxys awards Zeebrugge LNG gig to Sacyr Proyecta

Belgium's Fluxys has awarded a new contract to Spain's Sacyr Proyecta for services at its LNG terminal in Zeebrugge, Belgium.

Rotterdam LNG bunkering volumes climb in H1

Liquefied natural gas (LNG) bunkering volumes in the Dutch port of Rotterdam rose in the first half of this year compared to last year, despite a drop in second-quarter volumes.

More News Like This

Crowley’s carrier delivers US LNG cargo to Puerto Rico

The first US-flagged LNG carrier, American Energy, owned by Crowley, has delivered a US LNG cargo to Naturgy's facility in Penuelas, Puerto Rico.

Crowley deploys first US LNG carrier to supply Naturgy’s facility in Puerto Rico

US shipping and logistics company Crowley will deploy the first US-flagged LNG carrier, American Energy, to transport US-sourced LNG to Naturgy's operating facility in Penuelas, Puerto Rico.

NFE amends Puerto Rico gas supply contract

US LNG player New Fortress Energy has amended its recently extended 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority.

NFE extends Puerto Rico gas supply deal

US LNG player New Fortress Energy has secured a one-year extension of its 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority.