Excelerate Energy and AxDo Bahamas have signed an 11-year agreement for LNG supply that will assist in the development of the Bahamas LNG hub. This agreement enables AxDo to become the primary customer of the LNG storage and distribution facilities that Excelerate is planning near Grand Bahama.
Details of the Agreement and Its Impacts
This agreement allows for the delivery of up to 16 trillion British thermal units of LNG per year and is considered a long-term commercial foundation for this project. This collaboration, which includes AxDo's shipping and fueling expertise with Excelerate's LNG supply infrastructure and capabilities, aims to meet the growing LNG demand in the Bahamas and the broader Caribbean region.
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AxDo, as a Bahamas-based company, has emphasized that reliable access to energy is essential for the continued development of the Bahamas and the Caribbean. This agreement allows the company to leverage its experience in energy markets and international supply chains, collaborating with key partners like Excelerate and Domicisle to develop a flexible LNG hub in the Bahamas and the region.
Future Plans and Infrastructure Development
Initial LNG deliveries are expected to begin in 2027 using existing LNG supply and logistics capabilities from Excelerate's Jamaica platform. The second phase of this project will involve the deployment of a floating storage unit (FSU) near Grand Bahama in 2028, which will become an LNG storage and distribution facility at sea.
Excelerate believes that Grand Bahama is located in one of the busiest maritime corridors in the Caribbean and is well-positioned to support the fueling needs of cruise ships, electricity generation, and regional LNG distribution. This hub will also enhance LNG logistics capabilities and energy security in the region.
The Bahamas LNG hub is designed to provide LNG storage and distribution services for marine fueling, electricity generation, and other downstream customers, expanding access to natural gas across the region.
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