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.

- Advertisements -

Most Popular

Report: Egypt’s EGAS charters Hoegh LNG’s FSRU

The Egyptian Natural Gas Holding Company (EGAS) has chartered Hoegh LNG's floating storage regasification and storage unit, Hoegh Galleon,...

Equinor says nobody injured after leak at Hammerfest LNG

Norway’s Equinor has confirmed that there were no injuries following a hydrocarbon leak at its 4.3 mtpa Hammerfest LNG...

Glenfarne’s Texas LNG inks new deal with EQT

US natural gas producer EQT has entered into a second heads of agreement for liquefaction services from Texas LNG’s...

More News Like This

UAE’s Taqa eyes takeover of Spain’s Naturgy

UAE's energy firm Taqa is in talks with the three largest shareholders of Spanish utility and LNG player Naturgy...

NFE sells Puerto Rico power plants, inks new gas supply deal

US LNG player New Fortress Energy has sold two of its operating power plans to the Puerto Rico Electric...

NFE unit secures Puerto Rico power generation gig

A unit of US LNG firm New Fortress Energy has secured a contract to operate and manage Puerto Rico's...

GasLog Partners pens charter deal with Naturgy

LNG shipper GasLog Partners said it has signed a new time charter agreement with Spanish utility Naturgy. Under the deal,...