ECOnnect selected to provide floating LNG terminal for Bahamas

Norwegian energy equipment and marine infrastructure company ECOnnect Energy has inked a deal with New Providence Gas to provide a floating LNG import terminal to Bahamas, the Norwegian firm announced on August 5.

ECOnnect will deliver its IQuay C-Class floating LNG import terminal to New Providence Gas, which is a joint venture between Shell Bahamas and Sun Oil Holdings.

The FLNG import terminal does not require fixed jetties or coastal construction by utilizing a floating offshore transfer system which connects LNG tankers to onshore storage.

The FLNG unit, La Santa Maria, is scheduled to leave Norway in autumn for the Bahamas.

"This is about enabling access to better energy solutions where they are needed most. With this project, we are helping secure energy supply while reducing energy poverty and local pollution. For island nations like in the Bahamas, flexibility and reliability is critical," Morten Christophersen, CEO of ECOnnect Energy said in a statement.

Bahamas is in the midst of improving the reliability and flexibility of its power network while also attempting fuel switching to lower emissions.

Nassau is prioritizing the transition from oil and diesel towards LNG as a bridge fuel as it seeks to meet its climate targets. Bahamas has set a goal of reaching a 30% share for renewables in its energy mix by 2030. The shift away from oil and diesel should also provide more stable energy prices.

In July, Shell agreed to acquire a 40% stake in New Providence Gas and approved an investment in a small LNG import terminal.

By taking a final investment decision on the small import terminal, Shell is continuing momentum in its strategy of expanding its integrated gas operations as it seeks to develop LNG-to-power infrastructure in new markets.

Shell is betting big on the super-chilled fuel forecasting that global LNG demand will rise by about 65% from 2025 levels to nearly 700 mn tonnes per year by 2050.