Shell expands Caribbean LNG footprint with go-ahead for Bahamas regasification terminal

July 15, 2026, by Melisa Cavcic

Shell Bahamas Power Company, a subsidiary of the UK-headquartered energy giant Shell, has taken a final investment decision (FID) and broken ground on a liquefied natural gas (LNG) regasification terminal in The Bahamas.

Shell breaks ground on Bahamas LNG project; Source: Shell

Shell’s investment decision entails the acquisition of a 40% interest in New Providence Gas (NPG), a joint venture with Sun Oil, a subsidiary of FOCOL Holdings. NPG will construct, own and operate a 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.

The investment supports the modernization of the nation’s energy system, provides a lower-emissions alternative to existing fuel oil and diesel-based power generation, and seeks to enhance reliability. Shell will be the LNG supplier for this project and will leverage its U.S. 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. Given that most of the country’s electricity generation relies on imported diesel and fuel oil, the LNG development will enable the nation to diversify its energy mix and support a more flexible and resilient power system.

Tom Summers, Executive Vice President at Shell LNG Marketing & Trading, commented: “This investment marks an important milestone for The Bahamas and its transition to a lower-emissions energy system.

“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.”

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According to Shell, this investment marks an important milestone for The Bahamas and its transition to a more modern and lower-emissions energy system, as the government is advancing a phased approach to energy sector reform, enabling the gradual conversion of existing power generation to natural gas in line with national demand.

The country’s goal is to generate 30% of electricity from renewable sources by 2030, with investments including solar integration, hybrid microgrids across Family Islands, and LNG as a transition fuel on New Providence.

The LNG regasification project builds on the UK giant’s global experience in delivering LNG-to-power solutions, offering a scalable model that can be replicated across emerging markets seeking to balance affordability, reliability and lower emissions.

“We believe that gas, including LNG, plays a vital role through the energy transition. It supports intermittent renewable energy by providing stability for national grids, and it contributes to global decarbonisation as a lower carbon alternative in power generation, heavy-duty road transport and shipping,” emphasized Shell.