US Excelerate Signs 11-Year LNG Supply Agreement in the Bahamas

en.Wedoany.com Reported - On November 5, US liquefied natural gas infrastructure company Excelerate Energy and AxDo Bahamas announced an 11-year LNG supply agreement with an annual supply volume of up to 16 trillion British thermal units. The agreement will support the development of the Bahamas LNG Hub offshore storage and distribution hub near Grand Bahama Island in the Bahamas, with AxDo Bahamas becoming the project's anchor customer. The project plans to launch initial LNG supply in the first quarter of 2027 and deploy floating storage facilities in the second half of 2028.

AxDo Bahamas is a joint venture formed by Swiss energy company Axpo and Bahamian energy and marine logistics company Domicisle LNG in October 2026, primarily engaged in small-scale LNG supply and vessel bunkering in the Caribbean region. Under the agreement, Excelerate will provide LNG supply and infrastructure support, while AxDo will organize regional market supply through the energy trading, vessel bunkering and local logistics resources of its two shareholders. AxDo will serve as the first long-term customer of the proposed offshore LNG hub, providing contractual support for the project's subsequent facility investment.

The Bahamas LNG Hub project is located in waters near Grand Bahama Island and plans to build offshore storage and supply facilities serving the vessel bunkering, gas-fired power generation and regional LNG distribution markets. The project adopts a phased development model. The first phase plans to launch deliveries in the first quarter of 2027 using Excelerate's existing Jamaica LNG receiving, supply and logistics system, conducting operations through existing floating storage and regasification units and supporting transportation facilities.

The second phase of the project plans to deploy a floating storage unit (FSU) near Grand Bahama Island in the second half of 2028, forming an offshore LNG storage and distribution terminal dedicated to serving the Bahamian market. Implementation of this phase involves vessel configuration, conversion, engineering construction and related permitting work, with deployment timing subject to final approvals, engineering progress and contractual conditions. Excelerate plans to use the terminal to supply LNG to cruise ships, other vessel operators, power generation companies and downstream customers in the Caribbean region.

Excelerate management further disclosed on the third-quarter 2026 earnings call that the second-phase FSU is expected to require total capital investment of US$85 million to US$95 million, covering the cost of acquiring and converting an LNG carrier into a floating storage facility. Final conversion costs will be determined based on the completion of engineering design and project scope. The company expects the AxDo supply agreement to contribute approximately US$6 million in EBITDA in 2027, and expects that after FSU deployment, the average annual EBITDA over the remaining 10 years will be approximately US$15 million on top of existing contracted supply volumes.

Under Excelerate's project arrangements, the Bahamas LNG Hub will add a new Caribbean storage and distribution node alongside the existing Jamaica LNG infrastructure. This agreement clarifies the long-term customer, annual supply cap and phased deployment path, and the next phase of the project will focus on organizing initial gas supply, FSU engineering design and related permitting work.