The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

A Bahamian firm’s partnership with an international liquefied natural gas (LNG) supplier will attempt to “unlock the supply chain” with plans to soon store the fuel in this nation.

Sean Lalani, president of Eagle LNG, unveiling the tie-up with Elnet Lightering to expand the provision of LNG bunkering services from this nation, said: “The intent here is to unlock that supply chain between Florida and The Bahamas for the provision of LNG cargo transfer for [ship] bunkering purposes.

“In addition, we anticipate together with Elnet also pioneering the potential for LNG storage here in the country some time in the very near future. No firm plans as of yet to announce, but certainly we see that coming in our near future, which we think unlocks some of the future opportunities in terms of energy transition and the role of the islands of The Bahamas in that transition.”

In 2022, Eagle LNG announced a partnership with Royal Caribbean to supply LNG fuel for its ships. Mr Lalani said the cruise line’s new class of LNG-powered vessels will begin to call on The Bahamas in January 2024.

He said: “We have made an announcement, I believe last year, in respect of an agreement we have with a major cruise operator and their brand new class of ships, which will be calling on The Bahamas starting in January 2024.

“With that will come the advent of the supporting infrastructure which will begin, firstly, with cargo transfer and that’s a very state-of-the-art ship. We made an announcement just last month about taking delivery of that ship, and making some retrofits to that ship, in order to enable this operation in The Bahamas.

“I anticipate some announcements to come here in the very near future with our partner, Royal Caribbean, in respect of that bunkering operation and the successful advent of that operation on their new class of ships.”

Mr Lalani added that while Eagle LNG has had discussions with Carnival it will be starting its initiative with Royal Caribbean, with the introduction of LNG-powered vessels to The Bahamas “heralding a pretty bright future” for the country’s ports.

He said: “Certainly we’ve had lots of conversations with Carnival Cruise Lines. I think initially we’ll be working with Royal Caribbean, and certainly we’re very excited for January and what that brings.

“They’re making a very large commitment to the islands of The Bahamas here over the next several years around this initiative, and I think Carnival is absolutely someone we’re in discussions with as well and there’s other cruise operators that have new LNG-powered cruise ships that are coming on stream over the next several years.

“I think this actually heralds a pretty bright future for Nassau Cruise Port as well as the ports of the islands of The Bahamas.”

Mr Lalani said that although Eagle LNG has been “very excited” about the prospect of supplying LNG to New Providence and Grand Bahama for other industries, they will initially only launch to the maritime industry.

He added: “We have been coming to the islands of The Bahamas as Eagle LNG since 2015 in various discussions around the provision of LNG to New Providence and Grand Bahama.

“However, things move at their own pace and so I think from our standpoint it’s very important that we focus on the industries that are already moving. We certainly don’t want the islands of The Bahamas to be left behind in terms of the transition that’s happening in the maritime industry and with the use of LNG for bunkering.”

“That’s the reason why we entered into this partnership. We would love to be part of the solution for New Providence and Grand Bahama when the right time is there for the country to make that switch from petroleum.”

Mr Lalani added that the industrial sector is beginning to move towards renewable fuel sources such as LNG, and The Bahamas will begin to “see some things’” from Eagle LNG prior to Grand Bahama and New Providence utilities making the switch to this fuel.

“And certainly would be excited to be part of that transition. I think beyond that there are certainly some things that are happening in terms of the industrial sector,” he said.

“You know, the maritime sector is not the only sector that sees the benefits of moving away from traditional fuels, and so I think you will see some things from Eagle in respect to the industrial sector and things we can be doing, certainly, prior to the utilities of Grand Bahama and New Providence being ready to make that switch.”

Mr Lalani explained that Eagle LNG currently offers bunkering in 40 ports and will soon be servicing 1,000 ships with the fuel. He said: “Today we have 400 ships. We have LNG bunkering available in almost 40 ports around the world and growing astronomically because this is part of the future, needs to be part of it.

“And so, with the order book that’s already there, the ships that are already being built, we will soon have 1,000 ships in the water running on LNG, and so that opportunity we certainly see it’s tremendous for the country.”

Mr Lalani added that the partnership will allow The Bahamas to capitalise from LNG-powered vessel traffic and provide an opportunity for licensing services.

He said: “We see a tremendous growth opportunity for licensing services, and we’re really excited to start this service next year and start to attract that traffic, which is I think is what the opportunity is - to attract that traffic to The Bahamas as opposed to other countries and other places that are offering similar solutions.

“We think there are opportunities both in terms of the offering of that service and the economic opportunity.”

Elbert ‘Ellie’ Hepburn, president and chief executive of Elnet Lightering, said he has seen an “uptick” in the amount of LNG-powered vessels over the past year and that his firm currently service 30 to 40 such ships regularly.

He said: “On a regular basis we attend throughout our maritime approximately 30 to 40 vessels calling agents from various husbandry services, fuel changes, some miscellaneous services.

“In the last year-and-a-half there has been an uptick in the amount of vessels that are LNG-powered that have been calling, so definitely as time goes on you see the industry move more towards a new solution.”