Shell Reaches FID on Bahamas LNG Regasification Terminal
Shell has reached FID on a small-scale LNG regasification terminal in The Bahamas, acquiring a 40% stake in the project that will supply natural gas for power generation on New Providence.
(P&GJ) — Shell has reached a final investment decision (FID) on a small-scale LNG regasification terminal in The Bahamas and acquired a 40% interest in the project company that will develop the facility.
Shell Bahamas Power Company, a subsidiary of Shell plc, purchased the stake in New Providence Gas Ltd. (NPG), a joint venture with Sun Oil Holdings. NPG will construct, own and operate the LNG regasification terminal at Clifton Pier on New Providence, supplying natural gas for electricity generation on the country's most populous island.
The terminal is intended to support The Bahamas' transition from imported diesel and fuel oil to natural gas for power generation while improving fuel diversity and grid reliability.
Shell will supply LNG to the project using its U.S. LNG portfolio and said its experience in small-scale LNG operations and regional LNG bunkering helped develop the project.
Tom Summers, executive vice president of Shell LNG Marketing & Trading, said the investment expands Shell's integrated gas business while supporting the country's energy transition.
"This investment marks an important milestone for The Bahamas and its transition to a lower-emissions energy system," Summers said.
"It also reinforces Shell's focus on growing its integrated gas and LNG business by delivering competitive, scalable LNG solutions in emerging markets."
The project supports the Bahamian government's "New Energy Era" initiative, which aims to modernize the country's power sector through greater use of natural gas and renewable energy. Officials said natural gas will serve as a transition fuel as the country works toward generating 30% of its electricity from renewable sources by 2030.
Future plans also include additional natural gas infrastructure on New Providence, including new gas-fired generation and pipeline development.