Shell Bahamas Power Company Inc. (Shell), a subsidiary of Shell plc, has taken a final investment decision on an LNG regasification terminal in The Bahamas.
As part of the investment decision, Shell acquired a 40% interest in New Providence Gas Ltd. (NPG), a joint venture with Sun Oil Holdings (Sun Oil), a subsidiary of FOCOL Holdings Limited. NPG will construct, own and operate a new small-scale LNG regasification terminal at Clifton Pier, enabling the supply of natural gas for power generation on New Providence, the most populous island in The Bahamas.
The investment supports the modernisation of The Bahamas’ energy system and providing a lower‑emissions alternative to existing fuel oil and diesel-based power generation and seeking to enhance reliability.
Shell will be the LNG supplier for this project and will leverage its U.S. LNG portfolio to provide a secure and reliable fuel supply. Shell’s expertise in small-scale LNG operations and LNG bunkering, combined with a growing regional bunkering network, was key to designing a viable LNG solution for the Bahamas.
“This investment marks an important milestone for The Bahamas and its transition to a lower-emissions energy system,” said Tom Summers, Executive Vice President, Shell LNG Marketing & Trading. “It also reinforces Shell’s focus on growing its integrated gas and LNG business by delivering competitive, scalable LNG solutions in emerging markets, in partnership with local stakeholders.”
How this project fits within the New Energy Era
The project aligns with the Government of The Bahamas’ “New Energy Era” policy framework, which is focused on transitioning the country to a more modern, affordable, reliable and sustainable energy system. The government is advancing a phased approach to energy sector reform, enabling the gradual conversion of existing power generation to natural gas, in line with national demand.
Currently, most of the electricity generation in The Bahamas relies on imported diesel and fuel oil. This development will enable the country to diversify its energy mix and support a more flexible and resilient power system.
