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New Fortress Energy signs agreement for Nicaraguan gas power plant

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LNG Industry,

New Fortress Energy LLC has announced that it has signed a 25-year power purchase agreement (PPA) with two Nicaraguan electricity distribution companies: Distribuidora de Electricidad del Norte, S.A. (DisNorte) and Distribuidora de Electricidad del Sur, S.A. (DisSur).

Under the terms of the agreement, New Fortress claims that it will construct a natural gas-fired power plant with a capacity of approximately 300 MW near Puerto Sandino to supply power to Nicaragua’s national electric grid. It is expected that the plant will help advance the country’s long-term economic development, while simultaneously assisting the transition to lower-carbon energy sources.

According to the statement, New Fortress will supply natural gas to the plant via an offshore LNG receiving, storage and regasification terminal off the coast of Puerto Sandino. Under the terms of the PPA, the company is expected to provide over 21 trillion Btu/yr of natural gas over a period of 25 years. This is equivalent to approximately 700 000 gpd of LNG.

The project is expected to be funded with cash on hand and funds from operations. It is anticipated that the terminal and the plant will commence commercial operations in 2H21, subject to various conditions, including obtaining required licenses and permits.

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