Puerto Rico Ends $20Bn LNG Contract Talks with NFE

• Puerto Rico is ending its talks to negotiate a $20Bn liquefied natural gas (LNG) contract with New Fortress Energy (NFE). New Fortress was unwilling to discuss changes to the contract and missed a key deadline, the report said, citing Osvaldo Linares, president of Recoms Group, the island's third-party procurement office.
• The U.S. energy firm has been struggling to secure LNG for its power-generation operations on long-term agreements. Currently, the company is trying to raise cash and improve its finances by taking on partners for its primary businesses and selling some assets following its deferral of a shareholder dividend last year.
• Earlier this month, Bloomberg News reported Puerto Rico's financial watchdog had halted the supply deal over monopoly concerns. As a result of the talks ending, Puerto Rico's government is now in discussions with four other companies to provide LNG to the island under 30-day emergency contracts.
• Osvaldo Linares told Bloomberg his agency has sent a formal communication to Puerto Rico's oversight board saying negotiations had ended. A spokesperson for the Financial Oversight and Management Board of Puerto Rico confirmed receipt of the letter.
• The letter was consistent with the watchdog's observations that neither the third-party procurement office nor the government was willing to defend the terms of the contract, which had been initially submitted for review in June, the spokesperson added.

(Source: Reuters)