AxDo secures 11-year LNG supply deal for planned Bahamas bunkering hub

AxDo Bahamas has signed an 11-year liquefied natural gas (LNG) supply agreement with Excelerate Energy to support a planned offshore storage and distribution hub near Grand Bahama. Announced on 5 November 2026, the agreement provides for deliveries of up to 16 trillion British thermal units annually.

AxDo, a joint venture between Swiss energy company Axpo and Bahamas-based Domicisle LNG, will become an anchor customer of the Bahamas LNG Hub. The project is intended to supply marine bunkering, power generation and other customers across The Bahamas and the wider Caribbean.

When will LNG deliveries begin?

Excelerate expects initial deliveries to start in the first quarter of 2027, drawing on its existing LNG supply, logistics infrastructure and floating storage and regasification unit in Jamaica.

A second development phase envisages deploying a floating storage unit (FSU) near Grand Bahama in the second half of 2028. That schedule remains subject to final permits, construction progress and other contractual conditions.

The FSU would provide offshore LNG storage and distribution capacity. Excelerate also said additional capacity would be available to support further sales to AxDo and other regional customers beyond the volumes covered by the agreement.

How will the partnership support marine bunkering?

Established in October 2026, AxDo combines Axpo’s international energy trading experience with Domicisle’s local market knowledge and maritime logistics capabilities.

The partners intend to connect downstream customers with Excelerate’s LNG supply and infrastructure. Marine fuel deliveries form one part of this broader distribution model, alongside supplies for electricity generation.

Excelerate’s Executive Vice President and Chief Commercial Officer, Oliver Simpson, said combining infrastructure, logistics and downstream partnerships would help the company develop additional natural gas markets in the Caribbean.

Grand Bahama’s position along a major Caribbean shipping corridor is expected to support cruise ship bunkering and regional LNG distribution. The planned facility would therefore serve both vessels operating in the region and customers requiring fuel for land-based energy use.

Why is Jamaica central to the initial supply plan?

Excelerate established its current Jamaican platform through the acquisition of New Fortress Energy’s local business, completed on 14 May 2025.

The assets included the Montego Bay LNG Terminal, the Old Harbour LNG Terminal and the Clarendon combined heat and power plant. The transaction brought LNG import infrastructure, energy production and associated downstream operations into Excelerate’s portfolio.

The acquisition included full ownership of the offshore floating storage and regasification terminal at Old Harbour and the 150-megawatt Clarendon facility, together with associated infrastructure. The announced transaction value was US$1.055 billion.

Excelerate’s Jamaican operations also include small-scale LNG distribution using transport containers and trucks. The company describes the platform’s bulk storage and distribution capabilities as a base for serving smaller markets across Jamaica and neighbouring Caribbean countries.

That existing infrastructure provides the operational starting point for the Bahamas agreement, ahead of the proposed deployment of dedicated offshore storage near Grand Bahama.

What are the next project milestones?

The immediate milestone is the planned commencement of supplies from Jamaica in early 2027. Development of the Grand Bahama storage facility would follow under the second phase.

The agreement establishes a long-term customer commitment, but the offshore hub remains a planned project. Its deployment timetable depends on the permitting and construction conditions identified by Excelerate.

The staged approach separates initial fuel deliveries from the later addition of dedicated storage infrastructure, allowing the partners to begin serving the market through existing facilities while advancing the Bahamas terminal.