Shell Bahamas Power Company Inc., a subsidiary of Shell plc, has reached a final investment decision (FID) for the development of a liquefied natural gas (LNG) regasification terminal in The Bahamas, marking a significant step in the country’s energy transition.
As part of the project, Shell has acquired a 40 percent stake in New Providence Gas Ltd. (NPG), a joint venture with Sun Oil Holdings, a subsidiary of FOCOL Holdings Limited. NPG will be responsible for constructing, owning and operating a new small-scale LNG regasification terminal at Clifton Pier, which will supply natural gas for power generation on New Providence, the country’s most populous island.
The investment is intended to support the modernisation of The Bahamas’ energy infrastructure by introducing natural gas as a lower-emissions alternative to the diesel and fuel oil currently used for electricity generation. The project is also expected to improve the reliability of the island’s power supply.
Under the agreement, Shell will serve as the LNG supplier, drawing on its US LNG portfolio to provide a secure and reliable fuel source. The company said its expertise in small-scale LNG operations, LNG bunkering and its expanding regional bunkering network played a key role in developing the project.
Tom Summers, Executive Vice President of Shell LNG Marketing & Trading, described the investment as an important milestone in The Bahamas’ transition to a lower-emissions energy system. He added that the project reflects Shell’s strategy of expanding its integrated gas and LNG business by delivering scalable LNG solutions in partnership with local stakeholders.
The project supports the Bahamian government’s “New Energy Era” policy, which aims to modernise the country’s energy sector by making it more affordable, reliable and sustainable. The strategy includes a phased transition of existing power generation assets to natural gas while increasing the share of renewable energy in the national electricity mix.
At present, the majority of electricity in The Bahamas is generated using imported diesel and fuel oil. The new LNG infrastructure is expected to diversify the country’s energy sources and contribute to a more flexible and resilient power system.
The LNG regasification project forms part of broader energy sector reforms, which target generating 30% of the country’s electricity from renewable sources by 2030. Planned investments also include expanded solar generation, hybrid microgrids across the Family Islands, natural gas-fired power generation on New Providence, and the construction of supporting gas pipeline infrastructure.
Shell said the project builds on its global experience in LNG-to-power developments and demonstrates a scalable model for emerging markets seeking to improve energy affordability, reliability and lower emissions. The company also highlighted its global LNG bunkering network, which currently spans 28 locations across 13 countries, as an important enabler of the project.
Shell continues to position integrated gas and LNG as a key part of its business strategy, arguing that natural gas can provide reliable power, complement renewable energy generation and support emissions reductions across the power, transport and shipping sectors.
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