New Energy Fortress celebrates IPO
SAN JUAN – New Fortress Energy, an integrated gas-to-power company, rang the Nasdaq MarketSite bell in Times Square Thursday, in celebration of its initial public offering (IPO) on the Nasdaq Stock Market.
The New York-based company was company contracted to transform the San Juan power complex’s units 5 and 6 to use natural gas, filed a $300 million initial public offering (IPO) this week, which will value the company at about $2.5 billion.
New Fortress is developing natural gas terminals in Jamaica, Puerto Rico and Latin America. Proceeds from the IPO will reportedly be used to finance the projects. In Puerto Rico, the firm operates as NFEnergia.
To back up the sale, the company is listing the contract it recently obtained from the Puerto Rico Electric Power Authority (Prepa).
In a recent document filed with the Securities Exchange Commission, New Fortress said its San Juan facility is currently under development and is expected to commence commercial operations in the second quarter of 2019.
“It is designed as a landed multi-fuel handling facility located in the Port of San Juan, Puerto Rico. The San Juan Facility is being constructed with multiple truck loading bays to provide LNG to on-island industrial users. In addition, we have submitted a proposal to the Puerto Rico Electric Power Authority (“PREPA”) to convert and supply natural gas to Units 5 and 6 of the San Juan Combined Cycle Power Plant – which have a capacity of 440MW [megawatts],” the document reads.
The SEC filing adds that the project in Puerto Rico should provide $285 million in savings to Prepa.
“The power plant is currently running on diesel, and we plan to convert the power plant to run on natural gas and provide approximately 25 TBtu [trillion British thermal units] of natural gas per year, which would equal approximately 850,000 gallons of LNG (70,000 MMBtu [million British Thermal Units]) per day. We expect the conversion to natural gas under our proposal would allow PREPA to realize significant, recurring annual cost savings of approximately $285 million after one time conversion costs while also using a more sustainable, environmentally friendly form of energy,” the document reads.