Puerto Rico has terminated discussions with New Fortress Energy regarding a $20bn liquefied natural gas (LNG) contract, reported Reuters, citing Bloomberg.

The decision came after New Fortress reportedly refused to consider amendments to the contract and failed to meet a crucial deadline, the report said, citing Osvaldo Linares, president of Recoms Group, the island's third-party procurement office.

Earlier in the month, Puerto Rico's financial watchdog refused to sanction the supply deal due to concerns over a potential monopoly, the report said.

The US-based energy company has faced challenges in securing long-term LNG agreements essential for its power generation operations.

In an effort to strengthen its financial position, New Fortress has been exploring various strategies including partnering on its core businesses and divesting certain assets. This follows the company's postponement of a shareholder dividend last year.

Requests for comment from New Fortress Energy and Linares were not immediately answered.

Linares said that formal notification had been sent to Puerto Rico's oversight board, indicating the end of negotiations.

The Financial Oversight and Management Board of Puerto Rico acknowledged receiving the letter, which it stated aligned with its observations.

The board had previously noted that neither the third-party procurement office nor the government had been prepared to defend the initial contract terms submitted for review in June.

With the termination of talks, Puerto Rico's Government is now engaging with four alternative companies to secure LNG supplies under 30-day emergency contracts.

In related news, New Fortress Energy has secured a five-year charter for the Energos Winter, a 138,250m³ floating storage and regasification unit, with the Egyptian Natural Gas Holding Company.