Shell has approved a major investment in The Bahamas, taking a final investment decision (FID) on a new liquefied natural gas (LNG) regasification terminal that is expected to support the country’s shift away from diesel and fuel oil for electricity generation.
The project will be developed through Shell Bahamas Power Company, which has acquired a 40% stake in New Providence Gas Ltd. (NPG), a joint venture with Sun Oil Holdings, a subsidiary of FOCOL Holdings. NPG will build, own and operate the small-scale LNG regasification terminal at Clifton Pier on New Providence, the country’s most populous island. Ground has already been broken on the development.
Shell will supply LNG to the terminal from its United States LNG portfolio, while the facility will receive imported LNG, convert it back into natural gas and deliver it for power generation. The project aligns with the Bahamian government’s ‘New Energy Era’ policy framework, which seeks to modernize the country’s power system through a phased conversion from imported diesel and fuel oil to natural gas, alongside greater use of renewable energy.
Tom Summers, Executive Vice President for Shell LNG Marketing & Trading, said the investment represents an important step in The Bahamas’ transition to a lower-emissions energy system while supporting Shell’s strategy to expand its integrated gas and LNG business in emerging markets.
According to Shell, the terminal is being designed in phases so capacity grows alongside electricity demand. Industry reports indicate the first phase is expected to support more than 170 megawatts of power generation on New Providence, with first gas targeted for the first quarter of 2027.
Engineering company Nikkiso Clean Energy & Industrial Gases Group was previously selected to supply the terminal’s modular regasification system. The equipment will include high-pressure pumps, a gas-fired vaporizer, insulated piping, power distribution and control systems, with a regasification capacity of about 55 million standard cubic feet per day.
The project adds to Shell’s LNG activities in the Caribbean through its role as LNG supplier and as a 40% shareholder in the company developing and operating the terminal. In addition to supplying LNG, the company will participate directly in the ownership and operation of the import terminal, expanding its regional downstream gas infrastructure as demand for cleaner-burning fuels grows across island nations.