3PPO Refers New Fortress Energy to Federal Authorities Over Gas Supply Interruptions
The independent procurement office cited potential violations of six federal statutes linked to NFE's control of the San Juan LNG terminal and its conditioning of deliveries on regulatory and payment disputes.
The short version
- El Vocero and NotiCel reported that 3PPO referred NFEnergia LLC to US prosecutors after the company paused LNG barge deliveries for 24 days affecting San Juan units 5 and 6
- Regulatory Compliance Services stated the referral mentions six potential federal statutes but makes no legal conclusions leaving determinations to federal authorities
- NotiCel reported that AAPP director Josué Colón ordered 3PPO to initiate formal legal and economic claims against NFE under the Deliver or Pay clause and to prepare a detailed progress report on five specific areas
- Both outlets noted NFE conditioned resumption of supply on reversal of a Puerto Rico Energy Bureau order regarding $17.6 million in alleged deficiencies
Updates
Update, Oct 9, 11:55 AM AST
NotiCel adds that AAPP director Josué Colón ordered 3PPO to file formal legal and economic claims against NFE under the Deliver or Pay clause and requested a detailed progress report.
NotiCel reported that on Thursday, Josué Colón, director of the Public-Private Partnerships Authority, sent a letter to Osvaldo Carlo Linares ordering the 3PPO to begin a formal legal and economic claim process against NFEnergia LLC for failures in natural gas deliveries since mid-September 2026. NotiCel reported Colón directed the office to calculate penalties, determine unjustified non-delivered gas volumes, compute compensation under the contract's "Deliver or Pay" clause, gather evidence, issue official notices and bill damages through the Electric Power Authority.
The letter states that since Sept. 16, 2026 the interruption has led to the use of more expensive replacement fuels with additional fuel costs estimated at approximately $1.25 million, underscoring the urgency of processing contractual claims without delay. Colón also requested a detailed progress report from 3PPO and the Electric Power Authority covering five areas: status of work and documentation, legal or force-majeure reasons alleged by the company, exact gas volume balance, additional replacement-fuel costs and full financial reconciliation of invoices and pending credits.
NotiCel's account repeats the earlier referral to federal prosecutors over at least six potential federal statutes, the pattern of interruptions during contract disputes, the $18 million in extra diesel costs (about $1.2 million daily) and the description of the government being placed in a "hostage" position due to NFE's monopolistic control of critical energy infrastructure.
Referral to Federal Prosecutors
The independent Office of Third-Party Procurement (3PPO) of the Public-Private Partnerships Authority (AAPP) referred matters involving NFEnergia LLC, a subsidiary of New Fortress Energy, to US federal authorities. Regulatory Compliance Services (ResComs), which operates the 3PPO, made the referral to the US Attorney's Office on Thursday citing potential violations of at least six federal statutes. El Vocero reported the office stressed it does not presume or assert any criminal or civil legal conclusions.
The referral follows a 24-day pause in the entry of an LNG barge to the San Juan terminal. According to the 3PPO, NFE controls the only LNG receiving terminal in San Juan harbor and its decisions on delivery timing have immediate consequences for the electric system. The office highlighted a pattern of actions that coincide with contract negotiations or disputes, placing the government in a disadvantaged negotiating position. El Nuevo Día reported the referral was made to the US Department of Justice.
What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
Se solicita a las autoridades federales correspondientes que revisen los hechos y circunstancias descritos y determinen si alguna ley federal, u otro interés federal, puede estar implicado.
Our translation: We request that the corresponding federal authorities review the facts and circumstances described and determine whether any federal law, or other federal interest, may be involved.
The source's own statement, as quoted by El Vocero. Not verified by PuertoRico.com.
Disputes Over Vessels and Payments
The 3PPO document includes the withdrawal of the vessel Energos Princess from San Juan harbor on Saturday, July 12, 2025, while the government was negotiating both a short-term agreement and the long-term supply contract executed on December 4, 2025. It also covers disputes involving the barge Amur River, which was withdrawn in protest after a Puerto Rico Energy Bureau order on a $17.6 million debt. ResComs stated that NFE conditioned new deliveries on reversal of that order or an unequivocal payment guarantee from the Electric Power Authority (AEE).
The Energy Bureau issued a resolution and order on September 30, 2026 estimating the economic impact of NFE delivery deficiencies between June and August at $17.6 million and deferring that amount pending resolution of contractual claims. Although the AEE has not withheld any payments to NFE, the company used the resolution to reject deliveries. The 3PPO described this as using control of critical energy infrastructure to influence government decision-making, effectively holding the government hostage because interruption of generation leaves no practical alternative.
Impact on Generation Assets and Costs
The interruptions affect not only San Juan units 5 and 6 but also three megagenerators at Palo Seco and 14 GE TM2500 units in San Juan and Palo Seco purchased with FEMA funds. These units have operated on diesel, with costs exceeding $18 million between September 16 and 30, 2026, or more than $1.2 million daily. During a 2025 interruption, additional daily diesel costs were estimated at $710,295. The 3PPO noted these costs are borne by all ratepayers and impact the island's economy. Osvaldo Carlo Linares, president of ResComs, had anticipated the referral in an interview with El Vocero earlier this week.
Where the sources differ
El Vocero, El Nuevo Día and NotiCel largely agree on the core facts of the 3PPO referral to federal authorities, the mention of at least six potential federal statutes, the pattern of supply interruptions during disputes, the $17.6 million Energy Bureau order, NFE's conditioning of deliveries on its reversal, and extra diesel costs of approximately $1.2 million per day since Sept. 16, 2026. NotiCel adds new information about Josué Colón's letter ordering formal claims under the Deliver or Pay clause and requesting a five-area progress report; it does not contradict any prior reporting.
What the reports do not say
The sources still do not name the six specific federal statutes potentially violated. They do not report any response or statement from New Fortress Energy or NFEnergia LLC to the referral or to the new claim-order letter. No information is given on whether federal authorities have opened an investigation, requested documents, or set a timeline. The reports do not state whether power outages have occurred because of the diesel switch, quantify total extra costs since the interruption began, or indicate whether the formal claims process has started.
Sources
Every link below was opened and checked when this story was published and last updated. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official Refieren a New Fortress Energy ante las autoridades federales
- Reporting Refieren a New Fortress Energy ante las autoridades federales
- Reporting Ante seis posibles violaciones: 3PPO refiere a New Fortress Energy a las autoridades federales por interrupción en suplido de gas
- Reporting Ante la fiscalía federal referido contra New Fortress
How we checked this
NotiCel, El Vocero and El Nuevo Día reported the 3PPO referral and related disputes; NotiCel is the sole source for Josué Colón's letter ordering formal claims and a progress report.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.