en.Wedoany.com Reported - Shell announced on Tuesday that it has made a final investment decision on a small-scale liquefied natural gas (LNG) regasification terminal project in the Bahamas. The partner previously held an event for the project's groundbreaking ceremony. As part of the investment decision, Shell acquired a 40% stake in New Providence Gas (NPG), a joint venture established between Shell and Focol subsidiary Sun Oil.

NPG will build, own, and operate the terminal at Clifton Pier to supply natural gas for power generation on New Providence, the most populous island in the Bahamas. Shell stated that this investment supports the modernization of the Bahamas' energy system, providing a lower-carbon alternative to existing fuel oil and diesel power generation, and aims to enhance power supply reliability.

Shell will serve as the LNG supplier for the project, leveraging its U.S. LNG asset portfolio to provide a secure and reliable fuel supply. The statement noted that the company's expertise in small-scale LNG operations and LNG bunkering, combined with its expanding regional bunkering network, was key to designing a viable LNG solution for the Bahamas. Shell did not provide pricing details or a commissioning date for the project, but according to local media reports, the project is priced at approximately $500 million and is expected to begin receiving LNG in the first quarter of 2027. Focol recently secured a $369.2 million financing agreement to support the project, which includes a $325 million syndicated loan led by the Canadian Imperial Bank of Commerce (CIBC), with participation from the Royal Bank of Canada (RBC), Scotiabank, and Bank of The Bahamas, as well as a $44 million loan from the Export-Import Bank of the United States. Last year, Shell and Focol awarded a contract to Nikkiso Clean Energy & Industrial Gases (Nikkiso CE&IG) to provide LNG regasification and cryogenic equipment. Nikkiso CE&IG stated that the regasification system has a capacity of 55 million standard cubic feet per day and adopts a modular, standardized design.