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Shell Expands Caribbean LNG Footprint With Bahamas Terminal
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Key Takeaways
Shell reached FID on a Bahamas LNG regasification terminal with partner Freeport Oil Company.
SHEL acquired a 40% stake in New Providence Gas, which will build and operate the terminal.
Shell will supply LNG from its U.S. portfolio for power generation on New Providence.
Shell plc (SHEL - Free Report) , a UK-based integrated oil and gas company, is expanding its LNG footprint in the Caribbean after reaching a final investment decision (“FID”) on a new liquefied natural gas (“LNG”) regasification terminal in the Bahamas, according to upstreamonline. The project, developed alongside Freeport Oil Company (Focol), a Bahamas-based leading integrated energy supplier, supports the country's efforts to diversify its energy mix and strengthen the reliability of its energy supply.
As part of the agreement, Shell has acquired a 40% stake in New Providence Gas (“NPG”), the joint venture that will build and operate the terminal. The remaining interest is held by Sun Oil Holdings, a subsidiary of Focol. Together, the partners aim to enable the supply of natural gas for power generation on New Providence while supporting the Bahamas' ongoing energy transition.
Shell Expands Its LNG Presence in the Caribbean
The Bahamas has long relied on imported petroleum products to generate electricity, making energy diversification an important national priority. Introducing LNG into the country's energy mix offers an alternative fuel that produces lower emissions than conventional liquid fuels while supporting reliable electricity generation.
For Shell, the investment aligns with its strategy of expanding the integrated gas and LNG business. The company has increasingly focused on delivering scalable LNG solutions that meet the specific needs of emerging markets.
New LNG Regasification Terminal at Clifton Pier
The new terminal will be built at Clifton Pier in New Providence. It will receive shipments of liquefied natural gas before converting the fuel back into its gaseous form for use in power generation.
Regasification technology is widely used around the world to enable countries without domestic natural gas resources to access LNG imports. Once operational, the facility will become an important part of the Bahamas' energy infrastructure by providing a reliable supply of natural gas for electricity generation.
Shell Will Supply LNG From Its US Portfolio
Shell confirmed that it will supply LNG for the project through the portfolio in the United States. As one of the world's leading LNG suppliers and traders, the company has an extensive global supply network capable of supporting projects in a wide range of markets.
Access to Shell's LNG portfolio is expected to provide a dependable fuel supply for the Bahamas while supporting the long-term operation of the terminal.
Supporting the Bahamas' Energy Transition
The investment is aligned with the Bahamas' New Energy Era policy framework, which identifies LNG as a bridge fuel during the country's transition toward greater use of renewable energy.
Natural gas emits less carbon dioxide than heavy fuel oil and diesel when used for power generation and also produces lower levels of sulfur oxides and particulate matter. As a result, LNG can help reduce emissions while maintaining reliable electricity supplies.
By introducing natural gas into the energy mix, the Bahamas is taking another step toward modernizing its energy infrastructure while preparing for increased renewable energy deployment in the future.
Why the Partnership With Focol Matters
The collaboration brings together two companies with complementary strengths.
Focol has served the Bahamian energy market for decades and brings extensive local market experience. Shell contributes global expertise in LNG supply, trading, logistics and infrastructure development.
Combining local knowledge with international LNG experience provides a strong foundation for delivering the project and supporting the country's evolving energy needs.
Energy Benefits for the Bahamas
The LNG terminal is expected to strengthen the Bahamas' energy infrastructure by introducing an additional fuel source for electricity generation. A more diversified energy mix can improve energy resilience and reduce dependence on a single imported fuel.
Access to LNG also provides greater flexibility within the country's power sector as it continues to modernize the energy system under the New Energy Era policy framework.
Shell Reinforces Its Long-Term LNG Strategy
Shell continues to view LNG as one of the key pillars of its integrated gas business. Demand for natural gas remains strong in many emerging economies as governments seek cleaner-burning fuels that can support energy security alongside expanding renewable energy capacity.
The Bahamas project reflects Shell's focus on developing competitive, scalable LNG solutions tailored to local market requirements through partnerships with regional stakeholders.
Looking Ahead
With the final investment decision complete, the project will move into its development phase under New Providence Gas.
Once operational, the Clifton Pier LNG regasification terminal will enable the supply of natural gas for power generation on New Providence, supporting the Bahamas' efforts to diversify its energy mix and reduce emissions. For Shell, the investment expands LNG presence in the Caribbean while reinforcing its strategy of growing the integrated gas business through partnerships in emerging markets.
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Imperial Oil is valued at $59.79 billion. It is one of Canada's largest integrated energy companies, engaged in crude oil and natural gas production, petroleum refining, fuel marketing and petrochemical manufacturing. Imperial Oil has a strong strategic partnership with ExxonMobil. Investors have been rewarded with an approximately 28.7% gain in the company's shares over the past year.
View the Zacks #1 Rank List
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Shell Expands Caribbean LNG Footprint With Bahamas Terminal
Key Takeaways
Shell plc (SHEL - Free Report) , a UK-based integrated oil and gas company, is expanding its LNG footprint in the Caribbean after reaching a final investment decision (“FID”) on a new liquefied natural gas (“LNG”) regasification terminal in the Bahamas, according to upstreamonline. The project, developed alongside Freeport Oil Company (Focol), a Bahamas-based leading integrated energy supplier, supports the country's efforts to diversify its energy mix and strengthen the reliability of its energy supply.
As part of the agreement, Shell has acquired a 40% stake in New Providence Gas (“NPG”), the joint venture that will build and operate the terminal. The remaining interest is held by Sun Oil Holdings, a subsidiary of Focol. Together, the partners aim to enable the supply of natural gas for power generation on New Providence while supporting the Bahamas' ongoing energy transition.
Shell Expands Its LNG Presence in the Caribbean
The Bahamas has long relied on imported petroleum products to generate electricity, making energy diversification an important national priority. Introducing LNG into the country's energy mix offers an alternative fuel that produces lower emissions than conventional liquid fuels while supporting reliable electricity generation.
For Shell, the investment aligns with its strategy of expanding the integrated gas and LNG business. The company has increasingly focused on delivering scalable LNG solutions that meet the specific needs of emerging markets.
New LNG Regasification Terminal at Clifton Pier
The new terminal will be built at Clifton Pier in New Providence. It will receive shipments of liquefied natural gas before converting the fuel back into its gaseous form for use in power generation.
Regasification technology is widely used around the world to enable countries without domestic natural gas resources to access LNG imports. Once operational, the facility will become an important part of the Bahamas' energy infrastructure by providing a reliable supply of natural gas for electricity generation.
Shell Will Supply LNG From Its US Portfolio
Shell confirmed that it will supply LNG for the project through the portfolio in the United States. As one of the world's leading LNG suppliers and traders, the company has an extensive global supply network capable of supporting projects in a wide range of markets.
Access to Shell's LNG portfolio is expected to provide a dependable fuel supply for the Bahamas while supporting the long-term operation of the terminal.
Supporting the Bahamas' Energy Transition
The investment is aligned with the Bahamas' New Energy Era policy framework, which identifies LNG as a bridge fuel during the country's transition toward greater use of renewable energy.
Natural gas emits less carbon dioxide than heavy fuel oil and diesel when used for power generation and also produces lower levels of sulfur oxides and particulate matter. As a result, LNG can help reduce emissions while maintaining reliable electricity supplies.
By introducing natural gas into the energy mix, the Bahamas is taking another step toward modernizing its energy infrastructure while preparing for increased renewable energy deployment in the future.
Why the Partnership With Focol Matters
The collaboration brings together two companies with complementary strengths.
Focol has served the Bahamian energy market for decades and brings extensive local market experience. Shell contributes global expertise in LNG supply, trading, logistics and infrastructure development.
Combining local knowledge with international LNG experience provides a strong foundation for delivering the project and supporting the country's evolving energy needs.
Energy Benefits for the Bahamas
The LNG terminal is expected to strengthen the Bahamas' energy infrastructure by introducing an additional fuel source for electricity generation. A more diversified energy mix can improve energy resilience and reduce dependence on a single imported fuel.
Access to LNG also provides greater flexibility within the country's power sector as it continues to modernize the energy system under the New Energy Era policy framework.
Shell Reinforces Its Long-Term LNG Strategy
Shell continues to view LNG as one of the key pillars of its integrated gas business. Demand for natural gas remains strong in many emerging economies as governments seek cleaner-burning fuels that can support energy security alongside expanding renewable energy capacity.
The Bahamas project reflects Shell's focus on developing competitive, scalable LNG solutions tailored to local market requirements through partnerships with regional stakeholders.
Looking Ahead
With the final investment decision complete, the project will move into its development phase under New Providence Gas.
Once operational, the Clifton Pier LNG regasification terminal will enable the supply of natural gas for power generation on New Providence, supporting the Bahamas' efforts to diversify its energy mix and reduce emissions. For Shell, the investment expands LNG presence in the Caribbean while reinforcing its strategy of growing the integrated gas business through partnerships in emerging markets.
SHEL's Zacks Rank & Key Picks
Currently, SHEL has a Zacks Rank #5 (Sell).
Investors interested in the energy sector might consider other stocks with favorable rankings, such as Par Pacific (PARR - Free Report) , Paramount Resources (PRMRF - Free Report) and Imperial Oil (IMO - Free Report) , all of which currently sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific is valued at 2.99 billion. It is an energy company that owns and operates refining, logistics, and retail assets across Hawaii, the Pacific Northwest and the Rocky Mountain region. Par Pacific’s shares have surged about 112.2% over the past year.
Paramount Resources is valued at $2.9 billion. It is a Canadian energy producer focused on the exploration, development, and production of natural gas, crude oil, and natural gas liquids in Western Canada. Paramount Resources stock has climbed roughly 28.7% in the past 12 months.
Imperial Oil is valued at $59.79 billion. It is one of Canada's largest integrated energy companies, engaged in crude oil and natural gas production, petroleum refining, fuel marketing and petrochemical manufacturing. Imperial Oil has a strong strategic partnership with ExxonMobil. Investors have been rewarded with an approximately 28.7% gain in the company's shares over the past year.