LNG hub planned off Grand Bahama after 11-year supply deal is signed

GRAND BAHAMA, Bahamas. A liquefied natural gas (LNG) hub is to be developed off Grand Bahama after US-listed Excelerate Energy signed an 11-year supply agreement with AxDo Bahamas, which will be the anchor customer for a planned offshore storage and distribution terminal near the island.

AxDo is a joint venture between Axpo, an international energy trading and marketing company, and Bahamas-based energy and maritime logistics company Domicisle LNG. It was set up in October 2026 to run small-scale LNG and bunkering operations in the region.

The agreement provides for deliveries of up to 16 trillion British thermal units of LNG a year.

Two-phase plan

Initial deliveries are expected to begin in 2027, using LNG supply and logistics from Excelerate's existing operation in Jamaica. A second phase is expected to bring a floating storage unit near Grand Bahama in 2028, subject to final permitting, construction timelines and other contractual conditions. That unit will serve as the offshore terminal.

The hub is intended to supply LNG for cruise ship and marine bunkering, power generation and other customers in The Bahamas and across the Caribbean. The companies say Grand Bahama's position on one of the region's busiest shipping corridors makes it a strategic location.

Companies' views

Oliver Simpson, Excelerate's executive vice president and chief commercial officer, said the hub showed the potential of the company's platform "to create new opportunities around our infrastructure".

Daniele Corti, Axpo's head of small-scale LNG, said: "Reliable access to energy is essential for the continued development of The Bahamas and the wider Caribbean."

Domicisle LNG chief executive Greg Buffington called the deal "an important step forward for The Bahamas", saying the aim was to make natural gas more accessible to power producers, marine operators and communities that need dependable energy.