The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

Lmunnings@tribunemedia.net

GROUND was broken yesterday for the New Providence Liquefied Natural Gas (LNG) Terminal at Clifton Pier, marking what the government says is a major step in modernising The Bahamas' electricity sector, improving power reliability and reducing long-term energy costs.

The project, a partnership involving FOCOL, Shell North America and Bahamas Power and Light (BPL), forms part of the government's broader energy reform programme and will provide LNG to new gas-powered generation facilities.

Prime Minister Philip "Brave" Davis said the groundbreaking represented "a new chapter" in how The Bahamas generates electricity, following years of ageing infrastructure and recent widespread power outages.

"Today represents our commitment to build an energy future that is stronger, cleaner, and more reliable for our people," Mr Davis said.

He acknowledged the recent nationwide power disruptions, saying they highlighted the vulnerability of the country's electricity network.

"Your frustration is real and your concerns are valid," Mr Davis said. "Over the past few weeks, many Bahamians have experienced the consequences of an unreliable energy system."

Mr Davis said the administration inherited an electricity grid that required extensive rebuilding rather than minor repairs. He outlined the government's energy reforms since taking office in 2021, including the rollout of solar microgrids in the Family Islands, renewable energy projects and the announcement of a $1.14bn energy transformation plan.

He said LNG would provide a more stable fuel source while supporting the country's goal of generating 30 percent of its electricity from renewable sources by 2030. Energy, Utilities and Aviation Minister JoBeth Coleby-Davis said the project marked the culmination of discussions that first began more than two decades ago.

"As far back as 2002, our nation was debating the introduction of liquefied natural gas (LNG), but today we will see shovels hitting the earth to mark the start of the foundation being poured on an important move in our energy transformation," she said.

Ms Coleby-Davis described LNG as a "bridge fuel" that burns significantly cleaner than the heavy fuel oil currently used for electricity generation while offering greater price stability. She argued that transitioning to LNG would not only reduce emissions but also strengthen energy security, lower electricity costs and create new economic opportunities.

"As minister with responsibility for the energy sector, I want to assure that the Government's goal is singular and unwavering: reliability and affordability," she said.

"This LNG terminal will help us to ensure that when we flip a switch, the light comes on every time."

She added: "By moving to a more efficient, stable fuel source like LNG, we are creating the pathway to lower electricity bills. This is not a maybe. This is the plan."

She said the development would create construction jobs in the short term and long-term employment opportunities in engineering and operations while encouraging additional private investment.

FOCOL Holdings President and Chief Executive Officer Dexter Adderley said the terminal was the product of years of planning, technical reviews, financing and collaboration.

"This facility is the New Providence Gas LNG Storage and Regasification Facility," Mr Adderley said.

He said the project would be developed in three phases. The first phase, expected to be completed in the first quarter of 2027, will supply LNG to 90 megawatts of gas-fired generation at Clifton Pier. The second phase, targeted for the fourth quarter of 2027, will extend LNG supply to the Blue Hills Power Station.

The third phase will support a new combined-cycle power plant at Blue Hills with a baseload capacity of more than 170 megawatts.

According to Mr Adderley, the combined investment in the LNG terminal and associated power generation infrastructure exceeds $500m. Once fully completed, he said, the terminal will have the capacity to supply LNG to projects throughout The Bahamas and the Turks and Caicos Islands.

"This project is estimated to yield significant fuel cost savings for many years to come," Mr Adderley said.

He described Clifton Pier as the country's energy gateway, comparing its strategic importance to Lynden Pindling International Airport.

"Today's groundbreaking is therefore not simply about constructing a new facility. It's about strengthening one of our country's most important gateways and investing in an energy future that is cleaner, more reliable, and built to serve generations to come."

United States Ambassador Herschel Walker praised the partnership between The Bahamas and the United States, noting the involvement of US Export-Import Bank financing, Turner Industries and Shell North America.

He described the project as "game changing" and said it demonstrated the strength of cooperation between the two countries.