The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Following widespread power outages impacting New Providence, the Davis administration yesterday argued that the country's transition to liquefied natural gas (LNG) is a critical step in rebuilding an ageing electricity system that can no longer meet modern demands.

Prime Minister Philip Davis KC and Jobeth Coleby-Davis, energy, utilities and aviation minister, used yesterday's groundbreaking for the New Providence Gas LNG terminal to directly address the electricity interruptions that have affected residents and businesses, maintaining that the project forms part of a wider effort to modernise an electricity network burdened by ageing infrastructure.

Mr Davis acknowledged the disruption experienced by consumers while stressing that the outages highlighted why major investment in the country's energy sector is necessary. "Over the past few weeks, many Bahamians have experienced the consequences of an unreliable energy system," said Mr Davis.

"Families felt the inconvenience, and communities across New Providence saw what happens when systems are interrupted. Your frustration is real and your concerns are valid."

While noting that electricity systems globally have come under increasing pressure from extreme heat, storms and rising demand, Mr Davis said that did not lessen the impact on Bahamian households and businesses.

"This has been one of the hottest summers on record and, across the globe, power grids are straining under the weight of extreme heat, surging demand, storms and infrastructure that was never built for the pressures we face today,” he added.

"That tells us this is not a challenge unique to The Bahamas - but it does not make what happened here any easier to accept." Mr Davis said the Government inherited an electricity system requiring wholesale reconstruction rather than incremental improvements.

"When this administration came into office in 2021, we understood the condition of the energy sector we inherited,” he added.  "We did not inherit a system that simply needed minor repairs. We inherited a grid that, in parts, was over 50 years old - infrastructure built for a Bahamas that no longer exists, straining to meet the demands of the one we live in today."

Mr Davis said the scale of deterioration extended across both New Providence and the Family Islands. "Sixty percent of generation capacity in New Providence required total replacement. In the Family Islands, that number climbed to 80 percent,” he added. “This was not a system that could be patched. It was a system that had to be rebuilt."

Mr Davis said successive initiatives, including renewable energy projects, utility agreements and now the LNG terminal, formed part of a longer-term strategy to transform the sector. He said consumers ultimately have three expectations.

"The power challenges must be addressed. The interruptions must be reduced. The cost of energy must go down. Those expectations are reasonable, and they are expectations we share,” he added.

Mrs Coleby-Davis also sought to reassure households and businesses frustrated by recent outages and rising electricity costs, saying the Government understood public concerns. "To the general public watching today, we hear you," she said.

"We know the frustrations of a power outage in the heat of the summer. We know the anxiety of opening an electricity bill that consumes a significant percentage of your household or business income."

Mrs Coleby-Davis also acknowledged that high energy costs have affected both the economy and consumers for decades.

"I acknowledge that, for too long, the cost of doing business and the cost of living in The Bahamas have been inflated by an energy sector that was stuck in the 20th century,” she said, adding that the Government's objective remains focused on two priorities.

"As minister with responsibility for the energy sector, I want to assure you that the Government's goal is singular and unwavering: Reliability and affordability." Mrs Coleby-Davis argued the LNG terminal represents one of the key investments needed to improve service reliability while lowering fuel costs over time.

"This LNG terminal will help us ensure that, when we flip a switch, the light comes on every time. It will ensure that our hotels, our hospitals and our schools can operate without fear of interruption,” she added.

Mrs Coleby-Davis also reiterated the Government's expectation that switching from heavy fuel oil to natural gas will eventually reduce electricity costs. "More importantly, 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 added.

"We are decoupling our fate from the wild swings of the global energy market and anchoring it in stable, modern infrastructure. We are putting money back into the pockets of the Bahamian people."

Dexter Adderley, FOCOL president and chief executive, said yesterday's groundbreaking reflected the urgency of addressing long-standing weaknesses in the country's electricity infrastructure.

"Ladies and gentlemen, I believe it is safe to say that we all understand the urgent need for reliability and infrastructure, and today's groundbreaking is evidence that we are tackling these issues head-on," he said.

Mr Adderley added that the LNG project represents an investment not only in cleaner energy but in strengthening the country's long-term electricity system.

"This project expands our energy infrastructure and strengthens our ability to deliver cleaner, more efficient energy solutions in New Providence and beyond. It is an investment in long-term energy resilience and in the economic opportunities that will follow,” he said.

The LNG terminal will be developed in phases beginning with supplying natural gas to Clifton Pier before expanding to Blue Hills, forming part of the Government's broader $1.14bn energy transformation programme announced last year.