AxDo Bahamas Limited and Excelerate Energy have signed an agreement under which the company will become a key customer of the Bahamas LNG hub. This agreement includes the annual delivery of up to 16 trillion BTU of liquefied natural gas (LNG) and provides the necessary commercial infrastructure for the Bahamas LNG hub project.
Development of LNG Demand in the Caribbean Region
The goal of the Bahamas LNG hub is to support the growing demand for LNG in the Bahamas and other parts of the Caribbean. This project is designed to provide LNG storage and distribution services to fuel ships, generate electricity, and serve other customers, aiming to expand access to natural gas in the region. Given the increased demand for energy in the Bahamas, this agreement will significantly contribute to establishing a sustainable LNG supply network.
Details and Implementation Steps
According to this agreement, which has been signed for 11 years, AxDo Bahamas will operate as the main customer of the LNG storage and distribution terminal at sea planned by Excelerate Energy. Initial LNG deliveries are expected to begin in 2027 and will utilize existing LNG supply and logistics capabilities from the Jamaica platform. The second phase of the project includes the deployment of a floating storage unit (FSU) near Grand Bahama in 2028, which will serve as the LNG storage and distribution terminal.
Grand Bahama, as a busy maritime corridor in the Caribbean, is strategically positioned to support the fuel supply for cruise ships, electricity generation, and LNG distribution demand in the region, while also enhancing LNG logistics capabilities and regional energy security.
Daniele Cortini, the LNG small-scale manager at Axpo, stated: "Reliable access to energy is essential for the continued development of the Bahamas and the Caribbean. With extensive experience in energy markets and international supply chains, Axpo can transfer this knowledge to the Caribbean and help develop a flexible LNG hub in the Bahamas and the region."
Greg Buffington, CEO of Domicisle LNG, also highlighted the importance of this agreement, stating: "This agreement is a significant step for the Bahamas and the development of a reliable LNG supply network in our islands. Our goal is to provide cleaner natural gas to electricity producers, marine operators, and communities in need of reliable energy."
Oliver Simpson, CEO of Excelerate Energy, emphasized the potential of the Bahamas LNG hub, saying: "The Bahamas LNG hub represents the potential of our integrated platform to create new opportunities around our infrastructure. By combining LNG supply, logistics, and infrastructure with strong downstream partners, we can develop new markets and expand access to natural gas throughout the region."
