The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

THE government will break ground on New Providence's liquefied natural gas (LNG) terminal today, marking a major milestone in its plan to modernise the country's electricity system following last Sunday's island-wide power outage.

Energy, Utilities and Aviation Minister JoBeth Coleby-Davis announced the groundbreaking on Thursday, describing the project as a key part of broader reforms aimed at improving reliability, reducing fuel costs and lowering electricity bills.

Her remarks came days after an island-wide blackout left New Providence without power, highlighting the challenges of operating an ageing electricity network while major upgrades are underway.

Mrs Coleby-Davis said LNG will provide a cleaner, less expensive fuel source for electricity generation.

"Simply put, LNG is natural gas cooled into liquid form so it can be transported safely to The Bahamas. Once it arrives, it is converted back into gas and used to generate electricity," she said.

The minister said natural gas burns cleaner than heavy fuel oil and diesel, produces fewer emissions and requires less maintenance. She said introducing LNG is expected to generate up to $100m in annual fuel savings, which should be reflected in the fuel component of consumers' electricity bills.

She added that LNG will also reduce Bahamas Power and Light's reliance on costly temporary rental generation, allowing the utility to invest more in permanent infrastructure.

Mrs Coleby-Davis said LNG will form part of a diversified energy mix that includes about 172 megawatts of LNG generation, utility-scale solar power, battery energy storage systems, upgraded substations and improved transmission infrastructure.

"This balanced energy portfolio gives us greater reliability, greater resilience, lower emissions and stronger energy security," she said.

She said utility-scale solar projects are progressing in New Providence, with land secured, construction advancing and the first solar-generated electricity expected to come online in March 2027.

Upgrades to the transmission and distribution network are also continuing through the installation of new substations, intelligent switching technology and digital controls, with final system testing expected to be completed by the end of July.

"We are rebuilding our electricity system while continuing to provide electricity to an entire nation," Mrs Coleby-Davis said. "That is much like renovating your home while continuing to live in it. It is complex and challenging, but it is necessary."

She said Bahamians should begin seeing the benefits of the reforms by 2027 through lower fuel costs, cleaner energy generation and a more reliable electricity network.

The LNG terminal at Clifton Pier forms part of the government's wider energy reform programme, which also includes renewable energy and hybrid power projects across the Family Islands aimed at improving reliability and reducing electricity costs throughout the archipelago.