Govt signs LNG agreements with FOCOL and Shell

The government has signed two significant agreements aimed at reducing energy costs and transitioning to cleaner, more reliable energy sources. The agreements include a Terminal Development and Use Agreement with New Providence Gas (NPG), a subsidiary of FOCOL Holdings, and an LNG supply agreement with Shell.

The development of the first LNG (liquefied natural gas) terminal at Clifton Pier will be a collaborative effort between FOCOL Holdings and Shell, with the first phase of the terminal’s construction slated to begin before the end of this year. The total cost of both phases of the project is estimated at $200 million, according to Attorney General Ryan Pinder.

Upon completion of phase one, the nation will save approximately $50 million annually, and by the completion of phase two, the savings will increase to $18 million per year.

Sir Franklyn Wilson, Chairman of FOCOL Holdings Limited, emphasized the importance of the agreements as the country continues its shift toward cleaner energy sources.

Prime Minister Philip Davis emphasized the benefits of incorporating LNG into the nation’s energy mix.

“The integration of LNG into our fuel mix is a major step in the right direction as we move away from ‘dirtier’ fossil fuels, such as diesel and oil, significantly lowering our carbon emissions," said Davis. "LNG is also typically cheaper and has less price volatility compared to diesel and oil, which will help stabilize our energy costs moving forward."