Shell has taken a final investment decision on a small-scale LNG regasification terminal in The Bahamas and bought a 40% stake in the project company. The facility at Clifton Pier will convert imported liquefied natural gas back into gas to fuel power generation on New Providence, the country's most populous island.
Shell has reached a final investment decision on a small-scale LNG regasification terminal in The Bahamas and acquired a 40% interest in the company that will develop it. Shell will supply the natural gas from its U.S. LNG portfolio.
Shell buys into a Clifton Pier joint venture
Shell Bahamas Power Company, a subsidiary of Shell plc, purchased the stake in New Providence Gas Ltd., a joint venture with Sun Oil Holdings. New Providence Gas will build, own and operate the terminal at Clifton Pier, feeding gas into electricity generation on New Providence.
Shell said its experience in small-scale LNG operations and regional LNG bunkering helped develop the project. According to Shell, executive vice president Tom Summers framed the deal as one that "marks an important milestone for The Bahamas" and its transition to a lower-emissions energy system.
A diesel-to-gas switch backed by government policy
The terminal is meant to move The Bahamas away from imported diesel and fuel oil while improving fuel diversity and grid reliability. It slots into the government's "New Energy Era" initiative, which aims to modernize the power sector through wider use of gas and renewables.
Officials said gas will act as a transition fuel as the country works toward generating 30% of its electricity from renewable sources by 2030. Further steps are planned on New Providence, including new gas-fired generation and pipeline development.
Source: Pipeline and Gas Journal
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