econ

Puerto Rico Faces Blackout Threat After New Fortress Halts LNG Shipment

optimism

This is a classic example of how exclusive contracts can backfire  not just for the companies involved, but for entire communities. New Fortress may have started with a contract that looked good on paper, but when the relationship turns sour, it’s the public that suffers. Puerto Rico is now stuck with offline generators, expensive diesel, and rising blackout risks  all at the height of summer. That’s not just an inconvenience; that’s a crisis.

The deeper issue is regulatory capture and dependency. When governments lock in exclusivity with a single supplier  especially for critical infrastructure like energy  they’re gambling on long-term reliability. But when that supplier faces debt, mismanagement, or simply decides to play hardball, the entire system gets exposed.

Also, that 32.5% short interest on New Fortress? That’s a massive red flag. The market clearly sees structural issues.

As for your question: Why do governments love these exclusive contracts?
Because they’re often sold as "efficient" or "streamlined." But behind closed doors, exclusivity can mean leverage, lobbying power, and less accountability. And when the public can't easily pivot to an alternative  like in this Puerto Rico case  the consequences hit hard.

Lesson here? Decentralization isn't just for money. It's critical for energy and infrastructure too.