San Juan, PR – October 21, 2026 – The Financial Oversight and Management Board for Puerto Rico today issued the following statement:
Puerto Rico recently experienced a weeks-long delay in the delivery of critical liquefied natural gas (LNG) for the generation of electricity. That lack of LNG delivery required the use of more expensive diesel that the Puerto Rico Electric Power Authority (PREPA) estimates cost the people and businesses of Puerto Rico approximately $32 million between September 16 and October 12, 2026.
A contract between PREPA and NF Energía LLC (NFE), approved by the Oversight Board and effective since December 2025, is supposed to ensure Puerto Rico receives the LNG it needs to fuel critical power plants. The Oversight Board supports PREPA and the Puerto Rico Public-Private Partnerships Authority (P3A) in their efforts to enforce that contract. Puerto Rico must always receive the LNG it needs and that NFE agreed to deliver.
The contract includes provisions that require NFE to allow third-party LNG delivery through NFE port facilities when NFE fails to supply LNG. In such circumstances, NFE must enter into an agreement with a third-party supplier in accordance with the LNG Tolling Term Sheet that is part of the contract. This Tolling Term Sheet is a fundamental part of the contract – and a critical condition of the Oversight Board’s approval of the contract. The very purpose of the tolling requirement was to ensure that Puerto Rico would not be left without access to LNG, regardless of which party, if any, is at fault. All parties agreed to this condition.
The dispute between the parties over failed LNG deliveries illustrates why allowing alternative suppliers to access the infrastructure necessary to serve the people of Puerto Rico is such a critical part of the contract. The tolling provisions exist precisely so that LNG keeps flowing – from NFE or from a third party – while any dispute between the parties is resolved. They must be honored every time NFE fails to deliver. Ensuring effective third-party access is essential to protect the reliability of the electric system, promote competition, and protect Puerto Rico’s residents and businesses from avoidable fuel costs.
The Oversight Board will also work with the Government of Puerto Rico to convene the relevant stakeholders to coordinate on preventing future interruptions in LNG deliveries, without prejudice to PREPA’s enforcement of its rights under the contract.