Puerto Rico Refers New Fortress Energy to Federal Prosecutors Over Gas Supply Violations

The Independent Procurement Office (3PPO) of Puerto Rico's Public-Private Partnerships Authority (AAPP) referred a case against NFEnergia LLC, a subsidiary of New Fortress Energy (NFE), to federal prosecutors, after concluding the company may have violated as many as six federal statutes amid the ongoing dispute over liquefied natural gas supply that fuels power generation plants on the island ¹. The referral became known Thursday, the same day Governor Jenniffer Gonzalez Colon accused the company of attempting "blackmail" after it threatened to halt future fuel shipments unless the government reversed an energy regulator's order or guaranteed additional payments ².

The dispute is not new. AAPP administers the long-term LNG supply contract with NFE on behalf of the Puerto Rico Electric Power Authority (PREPA), a deal signed on December 4, 2025 after years of tension between the two parties. As early as July 12, 2025, the company had withdrawn a loaded gas vessel amid a contractual disagreement, and interruptions have recurred since -- in March and July of 2025, and again in September and October of 2026 ¹. The most recent one began September 16, 2026, when NFE suspended deliveries while demanding that the Energy Czar's Office reverse a directive or that PREPA offer payment guarantees the company deemed sufficient ¹.

The numbers behind the standoff are substantial. The energy regulator calculated an incremental impact of $17,649,888.46 from supply deficiencies between June and August 2026 alone ¹. During the September interruption, the government had to turn to alternative fuels at a cost of more than $1.2 million per day between September 16 and 30, after 2025's alternative-fuel costs had already averaged $710,295.83 per day ¹. The most recent shipment, destined for Units 5 and 6 at the Central San Juan power plant, arrived aboard the vessel Amur River 23 days late ². In response to that delay, the government filed a motion in federal court seeking authorization to use the Port of San Juan with an alternative supplier -- a move the governor defended in court by arguing that NFE has already been paid and that its threat to halt shipments triggers contractual clauses allowing the government to seek other sources ². Federal Judge Maria Antongiorgi has scheduled a hearing for this Friday at 8:30 a.m. ².

What this means for you

If you live in Puerto Rico, this legal and regulatory fight can translate directly into your electric bill and into how reliable your power service is. Every day PREPA relies on pricier alternative fuels because NFE isn't delivering the contracted gas, that multimillion-dollar cost tends to eventually get passed on to ratepayers through fuel-cost adjustments. Meanwhile, as the dispute plays out in federal court, Units 5 and 6 at Central San Juan -- one of the grid's key baseload plants -- remain more exposed to outages if the alternative supplier doesn't arrive on time or new delays emerge. The referral to federal prosecutors also matters as an oversight signal: it's the government's own procurement watchdog office, not an outside group, documenting possible legal violations by a critical energy contractor.

What to know

1. The 3PPO, the office that oversees AAPP's public-private partnerships, referred the NFEnergia LLC case to federal prosecutors citing as many as six potentially violated statutes.
2. The dispute centers on the liquefied natural gas supply contract for power generation plants, which AAPP administers on PREPA's behalf.
3. NFE conditioned resuming deliveries on the energy regulator reversing a directive or on PREPA guaranteeing additional payments.
4. The documented economic impact exceeds $17.6 million for June-August 2026 alone, plus more than $1.2 million per day in alternative fuel costs during the September interruption.
5. The vessel Amur River, carrying fuel for Units 5 and 6 at Central San Juan, arrived 23 days late.
6. Governor Jenniffer Gonzalez called NFE's stance "blackmail," and the government is actively seeking an alternative supplier.
7. A federal court hearing is set for this Friday at 8:30 a.m. before Judge Maria Antongiorgi over using the Port of San Juan for a supplier other than NFE.

What's next

Friday's hearing before Judge Antongiorgi will be key to determining whether the government can bring an alternative LNG supplier into the Port of San Juan without violating the terms of its existing contract with NFE. In parallel, the 3PPO's referral now sits with the federal Department of Justice, which will decide whether to formally investigate NFEnergia LLC over the potential statutory violations -- a process that typically takes months before any charges, if ever. The governor has indicated her administration is exploring longer-term supply alternatives to reduce dependence on a single provider, which could lead to new negotiations or a future bidding process. In the meantime, PREPA will keep relying on costlier alternative fuels while the standoff is resolved, so ratepayers and legislators will be watching closely for any rate-adjustment request tied to these extraordinary costs.