New Fortress Energy Inc (NASDAQ:NFE) shares are ripping higher in Tuesday’s after-hours session after the company announced a long-term gas supply agreement with the Puerto Rican government.
What To Know: New Fortress said it reached an agreement on contract terms with the Third-Party Procurement Office and the Puerto Rico Public-Private Partnerships Authority for the long-term supply of liquefied natural gas to Puerto Rico.
New Fortress will provide a reliable and affordable supply of natural gas to Puerto Rico’s power system for a term of seven years under the supply agreement.
“We have had discussions on long-term fuel supply since April with the Government of Puerto Rico and are pleased to have reached an agreement,” said Wes Edens, chairman and CEO of New Fortress Energy.
The gas supply agreement is expected to help secure supply for Puerto Rico for the next seven years and allow for the conversion of additional gas-ready plants currently burning diesel. Up to 75 TBtu of natural gas per year can be supplied through the agreement.
“This is a milestone agreement for NFE and the government of Puerto Rico. Puerto Ricans pay far too much for electricity today and this long-term agreement provides cheaper and cleaner fuel for existing power plants for years to come,” Edens added.
NFE Price Action: New Fortress Energy shares were up 20.49% in after-hours, trading at $2.45 at the time of publication on Tuesday, according to Benzinga Pro. The shares closed the day up 44.93%
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