New Fortress Energy LLC to develop a natural gas-fired power plant in Nicaragua
- 15 October 2020
October 15th, 2020
New Fortress Energy LLC, a US-based company, announced a US$700 million investment for the construction of a natural gas-fired power plant in Nicaragua. The plant will be connected to the National Interconnected System through the Sandino sub-station, and will have an annual contribution of 2,233 GW to the country’s energy matrix.
As part of the project kick-off, the US company signed an energy sale-purchase contract with the state company Disnorte-Dissur. This new plant will be located in Puerto Sandino, to the west of the country, and its construction is expected to finalize in September 2021. The natural gas will be supplied by an offshore LNG receiving, storage and regasification terminal that is also being developed by New Fortress Energy.
This is New Fortress Energy’s first project in Central America, having already terminals in Puerto Rico, Jamaica and Mexico. Wed Edens, the company’s General Director, stated that this project won’t be the last one they execute in Nicaragua, and that it’s “a sign of our confidence in Nicaragua and in the region.” The power plant and terminal will contribute to Nicaragua’s long-term economic development by providing the country firm generation capacity and reducing harmful emissions.
On the other hand, the Minister of Energy and Mines in Nicaragua, Salvador Mansell, highlighted the importance of a project like this for Nicaragua: “First of its kind to settle in Nicaragua, the largest in history of our country, which will give stability to the National Interconnected System”. Additionally, he mentioned that renewable sources have grown by ten percent in the generation matrix during the last year, and that energy coverage is currently 97.24 percent, with the goal of reaching 98.42 per cent by the end of 2020.