Puerto Rico Gas Processing Rights Agreement
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FAQ
Actually conversion is aproximately 3.5 L to the gallon rounding out at about 2.50 per gallon. The reason gas is a little cheaper here is because the government buy crude oil instead of processed. We take the crude and convert it into gasoline in one of three processing plants here on the island.
Fossil fuels provide about 97% of Puerto Rico's electricity. In fiscal year 2022 (July 2021 to June 2022), fossil fuel-fired power plants generated about 97% of Puerto Rico's electricity.
Luma Energy's provisional contract will remain in place during negotiations to restructure the power authority's debt. As soon as a federal judge approves a debt restructuring plan for the power authority, Luma Energy's contract will become permanent for 15 years.
In June 2020, PREPA and the Puerto Rico Public-Private Partnership Authority selected LUMA Energy (LUMA) to maintain and modernize the electricity and transmission system in Puerto Rico over a 15-year contract period.
Puerto Rico sells gas by the liter, not the gallon, so there are roughly 3.79 liters in a gallon. Thus, Puerto Rico's average gas price per gallon since 1998 has been $2.77.
From July 2021 to June 2022, natural gas-fired power plants generated 43% of Puerto Rico's electricity, 97% of which is produced with fossil fuels.
Puerto Rico's renewable resources include solar energy, wind energy, hydropower, and biomass. Under the Puerto Rico Energy Public Policy Act, PREPA must obtain 40% of its electricity supply from renewable resources by 2025, 60% by 2040, and 100% by 2050.
Other than picturesque beaches and a tropical climate, Puerto Rico has limited natural resources. The mountainous terrain that dominates much of the island's surface considerably handicaps agriculture. Only clay, silica sand, and stone are found in economically significant quantities.