Shell greenlights Bahamas LNG regasification terminal

Shell said July 14 it has reached a final investment decision on a small-scale LNG regasification terminal in the Bahamas that it plans to supply using its portfolio of US LNG offtake.

As part of the FID by its subsidiary, Shell Bahamas Power Company, the energy giant said it acquired a 40% interest in New Providence Gas Ltd., a joint venture with a subsidiary of the Bahamian company FOCOL Holdings Limited. The joint venture will construct, own and operate the regasification terminal at Clifton Pier in Nassau, New Providence -- the country's most populous island.

The terminal is designed to support baseload generation at Clifton Pier in excess of 170 megawatts, according to a Shell spokesperson. The company is targeting first gas in the first quarter of 2027.

"This investment marks an important milestone for The Bahamas and its transition to a lower-emissions energy system," Shell's Tom Summers, executive vice president of LNG marketing and trading, said in a statement. "It also reinforces Shell's focus on growing its integrated gas and LNG business by delivering competitive, scalable LNG solutions in emerging markets, in partnership with local stakeholders."

The Bahamas does not have any large-scale LNG regasification infrastructure, although it does bring in small shipments of the superchilled fuel in ISO containers.

The regasification project is being developed in phases so capacity can increase in line with power demand, Shell said. It will include LNG storage and buffer tanks, pumps, vaporizers, boil-off gas compression, metering systems and associated facilities.

Shell said the project would offer an alternative to imported fuel oil and diesel-based power generation that the country relies on for most of its electricity generation.

The FID on the import project comes as global LNG spot prices remain elevated and volatile amid supply disruptions caused by the war in the Middle East.

Platts, part of S&P Global Energy, assessed the August JKM benchmark price reflecting LNG delivered to Northeast Asia at $19.436/million British thermal units on July 14, an increase of 91 cents/MMBtu from the previous assessment and still about 82% higher than prewar levels.