A coalition of environmental and community organizations is challenging a request by NFE Energía, LLC— a subsidiary of New Fortress Energy (NFE), the LNG company that recently underwent a court‑supervised restructuring — to dredge the San Juan Bay to support expanded liquefied natural gas (LNG) operations. The dredging petition, filed with the U.S. Army Corps […]
A coalition of environmental and community organizations is challenging a request by NFE Energía, LLC— a subsidiary of New Fortress Energy (NFE), the LNG company that recently underwent a court‑supervised restructuring — to dredge the San Juan Bay to support expanded liquefied natural gas (LNG) operations.
The dredging petition, filed with the U.S. Army Corps of Engineers, seeks authorization to deepen navigation channels to accommodate LNG vessels up to five times larger than those originally proposed. The request is tied to the continued operation of NFE’s floating methane gas storage facility, which critics say has operated for years without full federal approval.
The challenge comes at a sensitive moment for the company. New Fortress Energy, the parent entity, filed for bankruptcy in the United Kingdom earlier this year and pursued a cross‑border restructuring plan under the UK Companies Act. That plan — which significantly reshaped the company’s capital structure — was recently sanctioned by a bankruptcy court in New York, giving NFE the legal authority to implement its reorganization across jurisdictions. The approval allows the company to continue operating while reallocating equity and restructuring debt obligations.
Against that backdrop, local organizations argue that the dredging request reflects a broader strategy by New Fortress to reinforce its LNG footprint in Puerto Rico despite unresolved regulatory concerns.
“This is not just about dredging,” said Gabriel Meléndez of El Puente Puerto Rico. “It’s about expanding an operation that began with only temporary authorization and has since grown without adequate oversight.”
Environmental groups say the dredging would enable expanded maritime and land‑based operations that have not undergone comprehensive environmental review. They also warn that the proposal could increase industrial risks in one of Puerto Rico’s most densely populated regions and its principal commercial port — a critical node for the island’s import‑dependent economy.
Residents in Cataño, Guaynabo, Bayamón, Toa Baja, and San Juan have raised concerns about the absence of an Environmental Impact Statement, emergency response plans, and federal operating permits. Community leaders argue that an accident involving LNG infrastructure could disrupt port operations and supply chains.
The dredging request also intersects with recent proposals to expand gas infrastructure, including a January submission to connect San Juan with temporary generators in Palo Seco. Environmental groups contend that the initiative represents a large‑scale gas pipeline strategy rather than a limited 11‑kilometer connection.
From a policy standpoint, the dispute highlights tensions between LNG investment and Puerto Rico’s statutory mandate to achieve 100 percent renewable energy by 2050. “Continued fossil fuel investment contradicts the island’s long‑term energy goals and exposes Puerto Rico to climate‑related vulnerabilities,” said Mónica Flores Hernández of El Puente Puerto Rico.
The coalition is urging the Army Corps of Engineers to deny the dredging request and calling on the Federal Energy Regulatory Commission to revoke NFE’s temporary operating authorization. They are also demanding a full Environmental Impact Statement, public hearings, and disclosure of emergency evacuation plans before any expansion proceeds.
NFE Energia did not respond to requests for comment.
