New Fortress Energy (NASDAQ:NFE) jumped 28% on Monday after regulators in Puerto Rico gave provisional approval to a seven-year agreement for liquefied natural gas supply to the U.S. territory.

The Financial Oversight and Management Board for Puerto Rico conditionally signed off on the deal, which carries an estimated value of about $3.2 billion. The green light, announced late Friday, represents a major commercial win for the energy infrastructure firm.

As part of the agreement, New Fortress Energy must secure a backup supply arrangement with an independent third-party provider to ensure continuity if it cannot deliver LNG or declares force majeure. Final approval rests on the Puerto Rican government updating the current LNG tolling term sheet and establishing “competitive open port access” for power generation sites in San Juan.

The deal signals a meaningful expansion of the company’s footprint in Puerto Rico, committing New Fortress Energy to supply critical energy resources to the island for the next seven years.

The sharp rise in the stock price suggests strong investor optimism about the long-term revenue potential tied to the contract, even with the conditions that must be met before it can be finalized.

New Fortress Energy stock price

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