New Fortress Energy Inc. Seals a $4 B LNG Deal with Puerto Rico, Sending Shares to New Heights
New Fortress Energy Inc. (NASDAQ: NFE) has announced the signing of a landmark liquefied natural gas (LNG) supply agreement with the government of Puerto Rico, a contract valued at approximately $4 billion. The deal, confirmed on September 16 2025 by Governor Jenniffer González and detailed in a Reuters post, will see the company deliver LNG to the island over an extended period, cementing its status as a key player in the U.S. gas‑to‑power sector.
Immediate Market Impact
The news ignited a sharp rally in NFE’s stock. Within minutes of the announcement, the share price surged by more than 20 percent, propelling NFE to a record close of $2.16 on September 16, 2025—its highest level since the 2025‑01‑16 52‑week high of $16.66 had been eclipsed earlier in the year. The 24‑hour volume spiked as well, with investors rapidly purchasing shares and call options. An unusual options‑trading report from American Banking News highlighted a 428 % jump in call‑option activity, with 62,318 contracts bought on the day, far exceeding the typical daily volume of roughly 11,792.
Deal Details and Strategic Significance
The contract is structured as a long‑term supply arrangement, underlining Puerto Rico’s strategy to secure stable, low‑carbon energy sources after the 2020 hurricane season. New Fortress Energy will provide LNG through its existing pipeline and storage infrastructure, leveraging its integrated gas‑to‑power capabilities to convert the imported fuel into electricity for the island’s power grid. The agreement also opens avenues for future collaborations, including the potential acquisition of additional LNG cargoes—a possibility already under discussion according to Bloomberg and Reuters reports.
From an operational standpoint, the deal positions New Fortress Energy to enhance its cash flow profile and diversify its customer base beyond the mainland United States. The company’s existing portfolio, which includes several U.S. projects, is expected to benefit from the steady revenue stream this contract provides. Analysts note that the long‑term nature of the agreement reduces market volatility exposure and could serve as a benchmark for future LNG deals in the Caribbean and Latin America.
Investor Reaction and Broader Market Context
The surge in NFE’s share price was mirrored across related energy and commodities stocks, as noted in the Morning Market Movers briefing by Finanznachrichten. Pre‑market trading saw notable activity in several energy names, suggesting a broader interest in the LNG segment amid ongoing supply‑demand dynamics.
While U.S. stock futures remained largely muted on September 17—reflecting cautious sentiment ahead of the Federal Reserve’s anticipated rate‑cut decision—the NFE rally stood out as a positive anomaly. Market participants are closely monitoring how the company’s financial metrics, such as a price‑earnings ratio of just over 10, will evolve in light of the new contract and the company’s broader growth strategy.
Looking Forward
With the Puerto Rico LNG contract in place, New Fortress Energy’s trajectory appears upward. The company’s website, www.newfortressenergy.com , highlights its integrated approach to building gas‑to‑power infrastructure, a model that now gains tangible traction through this high‑profile deal. Investors will likely watch for how the company leverages the agreement to secure additional cargoes, expand its pipeline network, and potentially explore other government contracts in the region.
In the coming weeks, analysts will assess the impact of the contract on NFE’s earnings, cash flow, and capital allocation. For now, the $4 billion LNG deal with Puerto Rico represents a pivotal moment for New Fortress Energy, marking a significant expansion of its operational footprint and reinforcing its position as a key player in the evolving energy landscape.