Shell and partner Freeport Oil Company (Focol) have reached a final investment decision (FID) on a liquefied natural gas regasification terminal in the Bahamas, the UK supermajor said on Tuesday.

As part of the FID, Shell said it acquired a 40% interest in New Providence Gas (NPG), a joint venture with Focol subsidiary Sun Oil Holdings.

NPG will build and operate a small-scale LNG regasification terminal at Clifton Pier to enable supply of natural gas to New Providence in the Bahamas, Shell said.

Shell said it will supply LNG for the project through its US portfolio.

The project is in line with the Bahamas’ “New Energy Era” policy framework, part of which includes suing LNG as a bridge fuel to greater use of renewable sources.

“This investment marks an important milestone for the Bahamas and its transition to a lower-emissions energy system,” Tom Summers, Shell’s executive vice president of LNG marketing and trading, said in a statement.

“It also reinforces Shell’s focus on growing its integrated gas and LNG business by delivering competitive, scalable LNG solutions in emerging markets, in partnership with local stakeholders.”

Author: Robert Stewart