By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Shell executives yesterday asserted that The Bahamas is well-positioned to benefit from liquefied natural gas’s (LNG) long-term growth despite recent market volatility because of its proximity to the US, which is rapidly becoming the world's largest exporter.

Tom Summers, executive vice-president for Shell LNG Marketing & Trading, said the company's partnership with FOCOL through New Providence Gas is intended to provide The Bahamas with a practical and scalable energy solution as it seeks to modernise its electricity sector while improving reliability and reducing emissions.

"Of course there's been a bit of volatility this year with LNG, but it has grown significantly over the last decade and is anticipated to grow even more through the end of this decade," said Mr Summers.

"What that means is there is confidence among buyers and investors to build LNG receiving facilities and, particularly here in The Bahamas, with its proximity to the US, which is fast becoming the world's largest LNG exporter, it's a very advantaged location to bring competitive LNG to the nation."

Mr Summers said while visitors are naturally drawn to the country's beaches and tourism product, reliable energy infrastructure is equally essential to supporting economic activity.

"When people think of The Bahamas, they picture the natural beauty, the turquoise waters, the remarkable coastline and the vibrant communities. But what is less visible, yet vitally important for any community or country, is the critical infrastructure and energy supply that powers those lives and livelihoods,” he added.

Mr Summers said The Bahamas faces many of the same energy challenges confronting island nations around the world, and cautioned that no single investment will resolve every challenge facing the electricity sector.

"Like many island nations, The Bahamas is striving to meet increasing energy demand while modernising its infrastructure, managing costs, increasing resilience and advancing its environmental ambitions,” he added.

"There is no single answer to these challenges. Sustainable, wide-reaching improvements require progress across the entire electricity system - from fuel supply and generation to transmission, distribution and the integration of renewable energy.

"That is why today's ceremony matters. This terminal is an important part of that broader transformation. It represents progress. It represents partnership. And it represents confidence in the future of this country."

Mr Summers said the project combines FOCOL's decades of experience in the Bahamian market with Shell's global LNG expertise. "FOCOL brings deep local knowledge, strong roots and decades of experience serving customers and communities across this country,” he added.

"At Shell, we bring global LNG capabilities, supply experience and a long history of working with customers and partners here in The Bahamas. We bring our expertise in small-scale LNG operations, LNG bunkering and a growing regional network to deliver a viable small-scale LNG solution for The Bahamas.

"Together, through New Providence Gas, our organisations are combining Bahamian expertise with Shell's leading position as an LNG supplier to support the country's national ambitions."

Mr Summers said every country's energy transition must reflect its own circumstances rather than following a one-size-fits-all approach. "Each country's energy circumstances and energy requirements are unique. But if there is one factor in common, it is that successful transitions must be practical, carefully sequenced and responsive to the communities they serve,” he added.

He described LNG as an important complement to renewable energy rather than a replacement for it. "Natural gas is a flexible, versatile energy source. It can support more efficient power generation. It can complement renewable energy when renewable generation is intermittent or unavailable. And when used in place of fuel oil and diesel for power generation, as we see here at Clifton, it can provide lower emissions,” Mr Summers said.

"For New Providence, the terminal being developed here will enable LNG to be received, stored and converted back into natural gas for power generation." Mr Summers stressed that improving The Bahamas’ electricity supply will require continued investment beyond the LNG terminal itself.

"Lasting improvements in reliability will depend on continued investment and co-ordinated progress across the whole power system, including generation, transmission and distribution,” he said. “Let us remember that this project is an important building block within a much larger national effort."

Looking beyond The Bahamas, Mr Summers said the project could also serve as a model for other island states seeking to modernise their energy sectors. "Many islands, nations and remote markets face similar challenges. They need energy solutions that are practical, scalable and suited to their individual circumstances,” he added.

"The model being demonstrated here shows how governments, local companies and global energy partners can work together to create scalable solutions tailored for local needs."