Governor seeks alternative LNG supplier after New Fortress threat
Jenniffer González Colón called the company's threat to halt deliveries a "chantaje" after a dispute over payments, prompting a federal court hearing on Friday.
The short version
- El Vocero reported that Governor Jenniffer González Colón said the government will seek another supplier to guarantee electric generation fuel after New Fortress Energy threatened to stop future LNG deliveries
- Metro Puerto Rico reported the governor described the company's position as "chantaje" because payments have been made and said it activates contract clauses allowing an alternative supplier
- Both outlets reported the Amur River tanker has been off the north coast since Sept 16 with fuel for San Juan Central units 5 and 6 and was ordered by federal court to enter on Oct 4
- El Vocero reported a federal judge scheduled a Friday 8:30 a.m. hearing on the AEE motion to use the San Juan dock with another company due to lack of supply by NFE
Dispute over payment and supply
Governor Jenniffer González Colón said the government is activating mechanisms to find another supplier of liquefied natural gas and guarantee fuel for electricity generation after New Fortress Energy threatened to stop future deliveries. El Vocero reported the warning from the company came after the Puerto Rico Energy Bureau determined to retain a payment of $17 million for an alleged breach.
The governor told reporters the company's argument constitutes "chantaje" because it has been paid. She said using that argument activates clauses included in the last negotiation that allow the government to bring in another supplier in case of non-delivery of gas. González Colón added that a motion was filed in court precisely to request permission to use another supplier. Metro Puerto Rico reported she stated Puerto Rico will not be held hostage by a contractor or supplier regarding energy supply.
What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
Eso es un chantaje, porque a ellos se les ha pagado; el utilizar ese argumento, a mi juicio, activa cláusulas para nosotros poder utilizar elementos que incluimos en la última negociación.
Our translation: That is blackmail, because they have been paid; using that argument, in my judgment, activates clauses for us to be able to use elements that we included in the last negotiation.
The source's own statement, as quoted by El Vocero. Not verified by PuertoRico.com.
Court hearing scheduled
After the legal filing, federal Judge María Antongiorgi scheduled a hearing for Friday at 8:30 a.m. in the case between the Puerto Rico Electric Power Authority (AEE) and New Fortress Energy. The AEE is requesting authorization to use the San Juan dock with another company due to the lack of supply by NFE, El Vocero reported.
Metro Puerto Rico reported the Amur River vessel remains off the north coast of Puerto Rico since Sept. 16. A federal court order required it to enter on Sunday, Oct. 4. The governor said she has held conversations with the federal Department of Justice, Genera PR and the energy czar while reviewing other avenues with lawyers and the Department of Justice.
Where the sources differ
Both El Vocero and Metro Puerto Rico agree that Governor Jenniffer González Colón called the New Fortress Energy position a form of "chantaje," that the Amur River tanker has been waiting since Sept. 16 with fuel for San Juan Central units 5 and 6, that a federal judge has scheduled a hearing for Friday morning on the AEE motion to use another supplier at the San Juan dock, and that the governor says payments have been made. El Vocero states the Energy Bureau determined to retain a $17 million payment for an alleged breach while Metro Puerto Rico reports NFE cites lack of payment guarantees for approximately $92.2 million in disputed additional amounts including $74.5 million for nomination excesses and $17.6 million for substitute fuel. Metro Puerto Rico adds the governor's statement that Puerto Rico will not be a hostage to a supplier and mentions conversations with the federal Department of Justice, Genera PR and the energy czar.
What the reports do not say
The reports do not state whether the $17 million has actually been withheld or remains in dispute, the exact status of the additional $92.2 million claimed by NFE, whether the Amur River has been allowed to unload, what alternative suppliers have been identified, or what impact if any the dispute will have on electricity rates or service reliability.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official "Es un chantaje": Gobernadora busca otro suplidor de gas ante amenaza de New Fortress
- Reporting "Es un chantaje": Gobernadora busca otro suplidor de gas ante amenaza de New Fortress
- Reporting “Es un chantaje”: Gobernadora truena contra New Fortress en medio de disputa por gas
How we checked this
El Vocero and Metro Puerto Rico both covered the governor's press conference and the upcoming federal court hearing. The characterization of the dispute as "chantaje" rests solely on the governor's statements as quoted by both outlets while details of the disputed balances come from the companies' legal representation as reported by Metro Puerto Rico.
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.