An agreement signed by the government with Shell and FOCOL for a liquefied natural gas plant will save Bahamians $50 million per year, Attorney General Ryan Pinder said yesterday.
“We know that fuel is a pass through to the consumer on energy generation,” Pinder said during a signing ceremony at the Office of the Prime Minister.
“Just by phase one we are looking at a $50 million annual savings in fuel prices to the consumer
“By the time we get to phase four, which will be a robust floating storage unit that is still in design, we are looking at $180 million a year over an annual savings to the consumer. Just on fuel pass through pricing.”
The agreement with Shell and FOCOL will pave the way for the development of the country’s first LNG terminal at Clifton Pier.
Energy Minister Jobeth Coleby-Davis said yesterday that the agreements signed include a sale and purchase agreement for LNG and a terminal development use agreement, and will enable the fast adoption of LNG in The Bahamas.
Pinder said the significant amount saved annually will create more disposable revenue for small business owners.
“Just imagine the economic opportunities of an extra $180 million a year in this economy in Nassau being invested and being able to create additional opportunities,” he said.
“Small businesses [will be] able to have extra disposable income to grow. The economic impact builds on the savings [and] we will see a certainly dramatic benefit to both the personal consumer and the business consumer in the country.”
When asked who will construct the terminal, Pinder said, “The construction of the terminal is a joint venture between FOCOL and Shell.
“They will be responsible for the construction and capitalization of the terminal. That includes the regasification facility and the storage facility.”
When asked who will buy the fuel, he said, “With respect to the purchaser of the fuel itself, it will be a government-owned special purpose vehicle that will be responsible for purchasing the fuel from Shell and then reselling it to the different power generators.”
Asked if the contracts went to tender, Pinder said it did.
“You might recall that this process would have started [one] administration ago,” he said.
“There was a RFP process at that time with respect to the LNG transition of the country, which never got to the end point to where we are today. That work had already been done. We picked that up and restructured the agreement.”
He added, “It was us who [were] able to finalize and negotiate it and get it across the finish line for the benefit of the Bahamian consumers.”
Under the Minnis administration, Bahamas Power and Light signed a MOU With Shell for an LNG plant but it was never completed. (March 21, 2025, Source: https://www.thenassauguardian.com/news/pinder-new-lng-agreement-will-save-bahamians-50m-a-year/article_34c5aa50-2845-41f7-944c-29792d5560e3.html)
BAHAMAS - LNG - SUPPLIES - IMPORTS - EXPORTS