The Tribune

PRIME Minister Philip Davis signed two agreements today to facilitate the country’s first liquefied natural gas (LNG) terminal at Clifton Pier.

The first agreement for Terminal Development and Use was signed with New Providence Gas (NPG), a subsidiary of FOCOL Holdings Limited. The second agreement for LNG Supply was signed with Shell.

Mr Davis flagged the move as a major step in the government’s energy reform efforts and "embracing cleaner energy".

Speaking at the signing ceremony, Davis acknowledged the longstanding challenges of high electricity costs, outdated infrastructure, and a debt-laden Bahamas Power and Light (BPL).

Phase one of the LNG terminal project is set to begin "before the end of the year".

Mr Davis said: "We see the integration of LNG into our fuel mix as a major step in the right direction as we move away from “dirtier” fossil fuels, such as diesel and oil, significantly lowering our carbon emissions. LNG is also typically cheaper and has less price volatility compared to diesel and oil."

He continued: "Because we are building a new industry, we can also anticipate significant economic impact, including the creation of new jobs."

Mr Davis pointed to ongoing efforts to modernize the power grid and expand utility-scale solar projects to several islands, including Abaco, Andros, Eleuthera, and Exuma.

He also commended Minister of Energy JoBeth Coleby-Davis and Attorney General Ryan Pinder for their roles in advancing the project.

“This agreement represents an essential component in our energy reform and economic development plans,” Davis said. “We still have a long way to go, but the Bahamian people are already feeling the results.”