Excelerate and AxDo sign 11-year LNG supply deal for Bahamas hub

AxDo is a joint venture between Axpo and Bahamas-based Domicisle LNG. It was established in October 2026 to conduct small-scale LNG and bunkering operations in the region, the companies said in a joint announcement. The planned Bahamas LNG Hub is designed to provide LNG storage and distribution services for marine bunkering, power generation and other downstream customers.

Initial deliveries are expected to begin in 2027 using Excelerate's existing LNG supply and logistics capabilities from its Jamaica platform. A second phase is expected to include deployment of a floating storage unit near Grand Bahama in 2028, subject to final permitting and construction timelines and other contractual provisions. The FSU would be the offshore LNG storage and distribution terminal.

Excelerate said the agreement establishes a long-term commercial foundation for the project. The joint announcement said combining AxDo's shipping and bunkering expertise with Excelerate's LNG infrastructure and supply capabilities is intended to help meet growing LNG demand across The Bahamas and the broader Caribbean.

Grand Bahama is located in one of the Caribbean's busiest maritime corridors, which Excelerate says positions the hub to support cruise ship bunkering and regional LNG distribution.

"The Bahamas LNG Hub demonstrates the potential of our integrated platform to create new opportunities around our infrastructure," said Oliver Simpson, executive vice president and chief commercial officer of Excelerate Energy.

Excelerate's earnings from the project

Excelerate's third-quarter presentation estimated the investment required for the dedicated FSU phase at about $85 million to $95 million, including the vessel. Management expects about $6 million of EBITDA from the Bahamas project in 2027 and an annual average of roughly $15 million after the dedicated storage unit is deployed. For scale, the company's full-year 2026 adjusted EBITDA guidance is $495 million to $515 million. The presentation said the project has capacity to support additional sales to AxDo and other regional customers.

Jamaica as the supply base

Excelerate bought Jamaica's integrated LNG and power operations from New Fortress Energy in May 2025, the Jamaica Observer reported. The deal brought the Montego Bay and Old Harbour LNG terminals and the Clarendon combined heat and power plant under its control. The Old Harbour floating LNG terminal will provide bulk storage and access to supplies that can be distributed to neighboring islands using smaller vessels. The newspaper also said Excelerate has not indicated how much of the contracted annual volume will initially be supplied through Jamaica or what additional investment may be required.