Washington – The Federal Energy Regulatory Commission (Ferc) today ordered New Fortress Energy (NFE) to show why it could develop the project to convert units 5 and 6 of San Juan for use of natural gas without its authorization.
In its order, which is unusual, the commission considered that the NFE project in San Juan appears to be under its jurisdiction, so it must explain why the construction and operation of the installations was carried out without his approval.
The FERC gave NFE a period of 30 days to explain its position regarding a project, which involves an investment of $ 1.5 billion.
“It appears that the installations of import of liquefied natural gas from New Fortress Energy located in San Juan are subject to the jurisdiction of the Commission ”, indicates the order, stressing that now the company has to demonstrate why it does not require“ prior authorization ”to continue with your project o.
On April 21, the president of the Natural Resources Committee of the Lower House, the Democrat Raúl Grijalva, and his fellow Puerto Rican Democrats Nydia Velázquez, Darren Soto and Alexandria Ocasio Cortez, together with Jesús “Chuy” García , asked the Ferc to examine the New Fortress project.
Tonight, Grijalva applauded the intervention of the Ferc.
"I appreciate the order from FERC that orders NFE to offer complete information on its gas projects natural in San Juan. Residents of the island deserve to know if the company built its infrastructure and began its operations legally, and I look forward to Ferc's final determination, "said the congressman, whose commission has primary jurisdiction in the federal lower house over Puerto Rico. .
A few days ago, in a report, the Institute of Economics and Financial Analysis in Energy (Ieefa) concluded that the Electric Power Authority (PREPA) granted "an unfair advantage" to the company New Fortress Energy (NFE) to the conversion of units 5 and 6 of San Juan, a project that involves an investment of about $ 1,500 million.
The organization dedicated to the analysis of energy markets called for the cancellation of the contract to NFE and a new competition process that includes proposals for renewable energy and distributed energy.
After learning about the report last week the executive director of PREPA, José Ortiz, maintained that the analysis of the Ie efa evidences that its authors do not know how the bidding process was carried out and that several of the arguments that are exposed are the same that were raised by Puma Energy, one of the competitors that was not awarded.
The contract NFE received the approval of the Puerto Rico Energy Bureau (NEPR), the Fiscal Oversight Board (JSF) and signed in March last year, after a judicial dispute in which PREPA prevailed. But, it was not presented to the Ferc.