HOUSTON, Sept 16 (Reuters) - Puerto Rico has negotiated

a $4 billion liquefied natural gas contract with New Fortress

Energy ( NFE ), Governor Jenniffer Gonzalez said on Tuesday in a

post on social media.

The supply deal, which comes after talks for a much larger

contract broke down in July, reduced the term to seven years

from 15 years - with the option to extend for an additional

three years - and also eliminated exclusivity clauses.

Gonzalez said prices for the LNG cargoes were more

competitive, with some premiums reduced.

"This agreement contributes to the process of Puerto Rico's

energy transition, reducing dependence on more polluting fossil

fuels," said Josue Colon, who was appointed to oversee the

territory's energy sector earlier this year.

The agreement is now pending approval by Puerto Rico's

Financial Oversight and Management Board.

New Fortress Energy ( NFE ), whose shares rose 45% in Tuesday

trading, said in a separate statement that the long-term LNG

supply for Puerto Rico's power system could reach up to 75

trillion British Thermal Units (TBtu) per year, with a minimum

annual take-or-pay volume of 40 TBtu.

NFE expects to ship the LNG from a floating facility that

began turning U.S. natural gas into LNG in Altamira, Mexico,

last year. The volumes will be priced at 115% of benchmark Henry

Hub prices, plus an additional $6.50 or $7.95 per million Btu.

"Puerto Ricans pay far too much for electricity today and

this long-term agreement provides cheaper and cleaner fuel for

existing power plants for years to come," NFE's CEO Wes Edens

said.