The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

THE government has signed two agreements to facilitate the development of a liquefied natural gas (LNG) terminal at Clifton Pier, with officials projecting $50m in annual fuel savings during the project’s first phase.

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

The terminal will be built in phases, with the first two expected to cost just under $200m. FOCOL and Shell will jointly construct and finance the terminal. A government-owned special-purpose vehicle will purchase LNG from Shell and resell it to various power generators.

Transport and Energy Minister JoBeth Coleby-Davis said the agreements would accelerate the transition to LNG in The Bahamas. She explained that in the first phase, a small-scale LNG vessel chartered by Shell will deliver LNG onshore, where it will be converted into natural gas at the terminal later this year. Initially, the gas will be used in turbines at Clifton Pier, with later phases expanding its use to other power facilities in New Providence.

Prime Minister Philip “Brave” Davis described the agreements as vital to the country’s energy reform and economic development strategy. He said the development of the LNG terminal at Clifton Pier would help The Bahamas transition to cleaner energy, with phase one set to begin before the end of the year. He added that integrating LNG into the fuel mix would reduce reliance on diesel and oil, significantly cutting carbon emissions while also providing more stable and affordable fuel costs.

Mr Davis pointed to the impact of the Equity Rate Adjustment (ERA), saying that 58,000 households had electricity bills below $125 in January.

He also outlined plans to expand solar energy across several islands, including Abaco, Andros, Eleuthera, Exuma, New Providence, Long Island, and San Salvador, while modernising the power grid to improve reliability and reduce costs.

Attorney General Ryan Pinder said the government expects LNG to be in the country by November 1, with the terminal operational by that time. He explained that as additional power generation units come online and the terminal expands in phases two and three, the capacity to offload gas will increase. He said the goal is to have a full LNG supply in New Providence within 18 months, capable of meeting the entire base load of Bahamas Power and Light (BPL).

Mr Pinder also highlighted the economic impact of the project, estimating that phase one alone would result in $50m in annual fuel savings for consumers. By phase four, he projected yearly savings could reach $180m, freeing up significant funds that could circulate through the economy, support small businesses, and create new investment opportunities.

FOCOL Holdings chairman Sir Franklyn Wilson said the initiative would provide a more reliable energy supply while lowering costs and promoting environmental sustainability. He added that the project would strengthen the country’s capital markets, stimulate economic growth, and demonstrate a commitment to long-term environmental responsibility.