Shell and Freeport Oil Company (Focol) reached a final investment decision to construct a small-scale liquefied natural gas (LNG) regasification terminal in the Bahamas.
Shell acquired a 40% stake in New Providence Gas (NPG) to facilitate the project. NPG, a joint venture with Focol subsidiary Sun Oil, will build and operate the facility at Clifton Pier.
The terminal will provide natural gas for power generation on New Providence, the country's most populous island. This project enables a transition from diesel and heavy fuel oil to lower-emission energy sources.
The facility will have a processing capacity of 55 million standard cubic feet per day. Shell will supply the LNG for the terminal using its U.S. energy portfolio.