By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A $500m liquefied natural gas (LNG) regasification terminal project was yesterday hailed as the cornerstone of The Bahamas’ energy reforms through its ability to deliver lower costs, improved energy reliability and a cleaner baseload fuel source for New Providence.

The New Providence Gas terminal, a joint venture involving BISX-listed FOCOL and Shell, the multinational energy giant, will be constructed at Clifton Pier and developed in three phases to supply fuel to existing and future power generation facilities while creating what executives described as The Bahamas’ first large-scale LNG import and distribution hub.

Prime Minister Philip Davis KC said the project marks "an important milestone" in efforts to overhaul an electricity system that has struggled with ageing infrastructure, rising demand and repeated outages.

"Today represents our commitment to build an energy future that is stronger, cleaner and more reliable for our people," said Mr Davis. "Today's introduction of LNG is a major step because it allows us to diversify our fuel supply, strengthen energy security and support a more reliable electricity system."

He added that the project forms part of the Government's wider strategy to modernise the country's electricity sector after inheriting what he described as an ageing and deteriorating network. "When this administration came into office in 2021, we understood the condition of the energy sector we inherited," said Mr Davis.

"We did not inherit a system that simply needed minor repairs. We inherited a grid that, in parts, was over 50 years-old - infrastructure built for a Bahamas that no longer exists, straining to meet the demands of the one we live in today."

Dexter Adderley, FOCOL’s president and chief executive, outlined the project's phased development, saying construction will begin with supplying LNG to existing electricity turbines at Clifton Pier before expanding to Blue Hills.

"This project is being built in three distinct phases. Phase one, which is targeted for completion in the first quarter of 2027, will supply LNG to 90 mega watts (MW) of gas turbines at Clifton Pier. Phase two, targeted for the fourth quarter of next year, will supply LNG for the Blue Hills power plant as well," said Mr Adderley.

He said the final stage will include construction of a new combined-cycle generating facility. "Phase three is what I call the icing on the cake. This LNG terminal will supply a new, state-of-the-art, high-efficiency combined-cycle power plant at Blue Hills with a total baseload capacity of more than 170 MW,” Mr Adderley added.

"Once this LNG facility is fully built, it will have the capacity to supply LNG to all LNG projects throughout The Bahamas and the Turks and Caicos." Mr Adderley said the total investment represents one of the country's largest energy infrastructure projects.

"The combined capital investment for the LNG-to-power project, which includes the LNG terminal and the new power generation assets, totals in excess of half a billion dollars,” the FOCOL chief said. "This project is estimated to yield significant fuel cost savings for many, many years to come."

He added that the development extends beyond simply changing the fuel source used for electricity generation. "This project expands our energy infrastructure and strengthens our ability to deliver cleaner, more efficient energy solutions in New Providence and beyond. It is an investment in long-term energy resilience and in the economic opportunities that will follow,” Mr Adderley added.

Jobeth Coleby-Davis, energy, utilities and aviation minister, described LNG as a critical transition fuel that will help modernise the country's electricity sector while reducing emissions. "LNG is the bridge fuel. It is significantly cleaner than the fuels we have relied on for half-a-century," she said.

"By transitioning to LNG, we are drastically reducing our carbon footprint. We are telling the world that The Bahamas is not just a victim of climate change, but a proactive leader in the global energy transition."

Mrs Coleby-David argued the benefits extend beyond environmental goals and will benefit the wider economy. "But this isn't just about the environment. It's about the economy,” she added. "Energy is the lifeblood of a modern society. When energy is expensive, everything is expensive. When energy is unreliable, progress stalls."

Mrs Coleby-Davis said integrating LNG into The Bahamas’ electricity system will improve both affordability and reliability. "By integrating LNG into our energy mix, we are stabilising our future. We are creating a system that is resilient, modern and capable of supporting the growing economy that we are building,” she added.

The minister also said the project is expected to create employment opportunities during both construction and operations, while helping attract additional private sector investment.

"In addition to the energy impact of this project, the development of this LNG terminal will also be an engine of growth. As this project moves forward, scores of jobs will be created through construction and, in the long-term, in engineering and operations,” Mrs Coleby-Davis said,

"When we invest in energy infrastructure, we aren't just building a terminal; we are building an ecosystem. Reliable, affordable energy attracts other industries. Therefore, we are creating the conditions for additional private investment that will generate a ripple effect of opportunity for generations to come."

Mr Davis said the LNG investment complements the Government's wider energy strategy, which includes expanding renewable generation across The Bahamas while strengthening the country's transmission and generation infrastructure.

"For Bahamians, the expectation is straightforward," he said. "The power challenges must be addressed. The interruptions must be reduced. The cost of energy must go down. Those expectations are reasonable, and they are expectations we share."