Shell has taken a final investment decision on a small-scale LNG regasification terminal in The Bahamas, taking a 40% stake in the joint venture that will build it. Shell Bahamas Power Company Inc., a subsidiary of Shell plc, made the decision and took its stake in New Providence Gas Ltd. (NPG), the venture it set up with Sun Oil Holdings, a subsidiary of FOCOL Holdings Limited.
NPG will build, own and operate the terminal at Clifton Pier, on New Providence, the most populous island in The Bahamas. Regasification turns liquefied natural gas, shipped in supercooled tankers, back into gas a power plant can burn. Once it is running, the terminal will supply gas for power generation on the island as an alternative to the fuel oil and diesel that Bahamian generators use now.
Shell as the gas supplier
Shell will supply the LNG for the project itself, drawing on its U.S. LNG portfolio. The company points to its experience running small-scale LNG operations and LNG bunkering, along with a regional bunkering network, as what let it put together a workable supply plan for the Bahamas. Tom Summers, an executive vice president in Shell's LNG marketing and trading business, called the investment "an important milestone" for the country's shift to a lower-emissions energy system.
Fitting the Bahamas' energy plan
The project fits within the Bahamian government's "New Energy Era" policy framework, which aims to move the country toward a more modern, affordable, reliable and sustainable energy system. The government is running a phased reform of the power sector that gradually converts existing generation to natural gas as demand allows. Most of The Bahamas' electricity today comes from imported diesel and fuel oil, so a working gas supply at Clifton Pier would let the country diversify its power mix and add flexibility on its most populated island.
