Shell announced the decision in a statement on Tuesday after the partners held a ground-breaking ceremony for the project.
As part of the investment decision, Shell acquired a 40 percent interest in New Providence Gas (NPG), a joint venture with Sun Oil, a subsidiary of Focol.
NPG will construct, own, and operate the new small-scale LNG regasification terminal at Clifton Pier, enabling the supply of natural gas for power generation on New Providence, the most populous island in the Bahamas.
She said the investment supports the modernization of the Bahamas’ energy system, providing a “lower‑emissions alternative to existing fuel oil and diesel-based power generation, and seeking to enhance reliability.”
US LNG supplies
Shell will be the LNG supplier for this project and will leverage its US LNG portfolio to provide a “secure and reliable fuel supply.”
“The company’s expertise in small-scale LNG operations and LNG bunkering, combined with a growing regional bunkering network, was key to designing a viable LNG solution for the Bahamas,” the statement said.
Shell did not provide pricing details for the project or the start-up date, but local media reports suggest the project is priced at approximately $500 million and is expected to begin receiving LNG in the first quarter of 2027.
Focol recently entered into a $369.2 million financing agreement to support the project.
The financing platform includes a $325 million syndicated loan, led by CIBC, with participation from RBC, Scotiabank, and Bank of The Bahamas, together with a $44 million loan from the Export-Import Bank of the United States, supported by its funding partner, Private Export Funding Corporation, according to a statement.
Last year, Shell and Focol awarded a contract to Nikkiso Clean Energy & Industrial Gases to provide LNG regasification and cryogenic equipment for their LNG-to-power project in the Bahamas.
Nikkiso CE&IG said that the packaged regasification system, with a capacity of 55 million standard cubic feet per day, features a modular, standardized design.
