Puerto Rico’s Office of Independent Procurement (3PPO) has referred New Fortress Energy to the U.S. Federal Prosecutor’s Office. The referral alleges that NFE’s subsidiary used its monopolistic control over the natural gas supply during contract disputes, leaving the government in what the office described as a “hostage” situation.
The action follows accusations that NFE halted gas deliveries in mid-September, forcing Puerto Rico to use more expensive diesel fuel. The interruption has reportedly cost the island more than $1.2 million per day.
The referral cites potential violations of at least six federal statutes. A former prosecutor said an investigation could lead to charges including fraud and extortion.
The referral escalates an ongoing conflict that includes lawsuits over previous delivery failures. Puerto Rico’s governor has labeled the company’s actions “chantage.”