New Fortress Energy LLC has signed a contract for the sale of firm power and associated energy (PPA) for 25 years, with Nicaraguan electricity distribution companies: Distribuidora de Electricidad del Norte, SA and Distribuidora de Electricidad del Sur, SA.
As part of the agreement, New Fortress will build a power plant that will operate based on natural gas with an approximate generation capacity of 300 megawatts. The plant will be located near Puerto Sandino and will supply power to the national electricity network of Nicaragua. This plant contributes to long-term sustainable economic development, and at the same time support the transition to more environmentally friendly energy sources that reduce carbon emissions.
New Fortress will supply the plant with natural gas through a terminal for the receipt, storage and regasification of liquefied natural gas (LNG) located offshore near Puerto Sandino. Under the terms established in the PPA, New Fortress expects to provide more than 21 TBtu of natural gas annually for 25 years. This equates to approximately 700,000 gallons of LNG (60,000 MMBtu) daily.
The project will be financed with available liquidity and funds from existing operations. The terminal and the power plant are anticipated to start commercial operation in the second half of 2021, subject to various conditions, including obtaining the required licenses and permits.
