US firm starts US-flagged transport of US LNG to Puerto Rico

Crowley has begun operations on the first US-flagged liquefied natural gas (LNG) carrier to transport US-sourced natural gas to Puerto Rico.

The company said the LNG cargoes will provide Puerto Rico with increased access to a reliable supply of US-produced LNG, helping address the island’s ongoing power demands.

"Crowley and Naturgy have entered into a multi-year agreement that provides for the regular delivery of the US mainland-sourced LNG to Naturgy’s operating facility in Penuelas, Puerto Rico," a statement from Crowley said.

The Crowley-owned 130,400-m³ LNG carrier American Energy will take US energy cargoes to Puerto Rico, which has suffered from chronic power outages since Hurricane Maria severely damaged the island’s already ailing power grid. 

"The entry into service of American Energy marks a significant step for fuel supply reliability in Puerto Rico for our energy grid, which will greatly benefit our people," said Puerto Rico Gov Jenniffer González-Colón. "This partnership is an initiative to act using existing regulations to increase access to a US-based LNG source that expands our options for the stabilisation of our energy grid, as we work towards providing our residents and businesses a more consistently reliable power generation source."

The 274-m LNG carrier will add to Crowley’s transport of more than 356M litres of LNG through its LNG Loading Terminal in Penuelas.

Each delivery of a fully-loaded American Energy will provides enough energy to power 80,000 homes for a year, according to Crowley. 

"This contract strengthens our presence in the global LNG market, particularly in the United States, and allows Puerto Rico to obtain a stable and competitive energy supply route," said Naturgy general manager of supply and wholesale markets, Jon Ganuza.

American Energy will be crewed by US mariners and provide regular service from the US Gulf Coast to Puerto Rico.