New Fortress Energy LLC will construct a 300-megawatt natural gas-fired power plant near Puerto Sandino in Nicaragua, according to a press release from the company.
The company announced yesterday that it has signed a 25-year power purchase agreement (PPA) with Distribuidora de Electricidad del Norte, S.A. (“DisNorte”) and Distribuidora de Electricidad del Sur, S.A. (“DisSur”), Nicaragua’s electricity distribution companies, to supply power to Nicaragua’s national electric grid.
The plant will contribute to the advancement of the country’s long-term economic development while also assisting the transition to lower-carbon, more environmentally friendly energy sources.
According to the release, “New Fortress will supply natural gas to the plant via an offshore liquefied natural gas (LNG) receiving, storage and regasification terminal off the coast of Puerto Sandino. Under the terms of the PPA, New Fortress is expected to provide more than 21 TBtu of natural gas per year over 25 years, the equivalent of approximately 700,000 gallons of LNG (60,000 MMBtu) per day.”
New Fortress will fund the construction project with cash on hand and funds from its operations. Both the terminal and the plant will start commercial operations in the second half of 2021, once the necessary licenses and permits have been received.
The plant will be the fifth constructed by New Fortress Energy, which has built two in Jamaica, one in Puerto Rico, and another in Mexico.