URCA updates LNG transfer operations regulations

On the heels of the government awarding a contract to Shell and FOCOL Ltd. for the storage, transfer and use of liquefied natural gas (LNG) to create electrical energy for New Providence’s power grid, the Utilities Regulation and Competition Authority (URCA) has released its public consultation document on proposed LNG transfer operations regulations.

“The proposed regulations are intended to replace URCA’s existing ship-to-ship handling operations regulations, expanding and clarifying the regulatory scope for LNG transfer operations in Bahamian waters,” URCA’s press statement on the public consultation document said.

“These include both ‘lightering’ (bulk LNG transfers) and ‘bunkering’ (LNG as marine fuel).”

URCA said the public consultation period is running from March 28 to April 28 of this year.

According to URCA, the draft regulations have been designed to provide “greater operational transparency, stronger safety protocols, and a streamlined framework for registering LNG transfer service providers”.

URCA’s draft regulations sets out a total fee structure for companies carrying out natural gas transfer operations (NGTO) at $5,450.

Those fees when broken down are for preliminary inspection of port officer ($300); attendance by an inspector ($500); application for NGTO ($100); a permit to carry out NGTO ($2,500); an application for registration or renewal as a natural gas transfer service provider (NGTSP) ($100); a certificate of registration as NGTSP ($1,500); an application for submission of operating plan ($150); and an approval of operation plan ($300).

URCA said those proposed fees are valid until the end of the year.

“This initiative follows the enactment of the Natural Gas Act in 2024, under which URCA was designated as the sector regulator responsible for licensing, oversight, and regulation of LNG activities in The Bahamas,” URCA’s statement said.

“The proposed changes are part of URCA’s broader goal of implementing a robust regulatory environment that encourages investment and ensures reliable, low-emission energy alternatives.

“URCA invites licensees, stakeholders, and members of the public to provide feedback on the draft regulations, which aim to enhance regulatory clarity, reflect international best practices, and support the safe and sustainable growth of LNG operations in The Bahamas,” the statement noted.