Jamaica supplying Caribbean with LNG

Excelerate Energy’s Jamaica hub has begun supplying liquefied natural gas (LNG) to other Caribbean islands, expanding the company’s regional footprint.

“We are already making deliveries to other islands and other Caribbean coastal areas,” said Steven Kobos, President and Chief Executive Officer, in an earnings call earlier this month. “We are pretty excited about the Caribbean.”

Kobos said the company had not previously discussed the deliveries, as it was not yet “sufficiently material”.

Jamaica’s LNG infrastructure, which Excelerate acquired last year for US$1 billion, accounts for roughly one-quarter of the company’s US$4 billion in total assets.

The LNG growth comes even as solar panel costs have fallen roughly 40 per cent since 2023, fuelling growing interest in renewable energy across the region. Excelerate, however, views LNG as a complement to renewable energy rather than a competing technology.

“With abundant natural gas supply from the US Gulf Coast and growing energy demand across the region, LNG can play a critical role in providing reliable, dispatchable power and helping countries pursue their renewable energy targets,” said Verona Carter, Vice-president and general manager for the Caribbean, in response to Financial Gleaner queries. “As countries scale up renewables as part of their energy mix, LNG becomes an important complement to intermittent generation, ensuring energy systems remain reliable and resilient.”

Excelerate reported net income of US$50.1 million for the three months ended June 30, up from US$20.8 million a year earlier, while revenue climbed 61 per cent to US$329.3 million. Management attributed the gains primarily to “a full quarter contribution from the Jamaica platform.”

The Jamaican operations accounted for roughly one-third of Excelerate’s total 2025 net income of US$167 million despite being owned for only part of the year. The acquired business generated US$262.5 million in revenue and US$53.9 million in net income between the May 14, 2025 closing date and year end, according to the company’s annual report.

Excelerate entered Jamaica through an acquisition of New Fortress Energy’s LNG and power assets, including the Montego Bay LNG Terminal, Old Harbour LNG Terminal, and Clarendon combined heat and power plant.

In an investor presentation released with its second-quarter earnings on August 5, the company described Jamaica as “a platform for future growth across the Caribbean”, outlining plans to expand LNG distribution, storage and logistics services into regional markets. The company said opportunities range from supplying hotels, factories and commercial customers through small-scale energy projects to using floating storage and distribution services to reach neighbouring territories.

“Jamaica’s existing LNG infrastructure, strategic geographic location and established operations, run by world-class talented Jamaicans, provide a strong platform from which we can support growing energy needs within Jamaica and pursue opportunities across the wider Caribbean,” Carter said.

Excelerate operates 12 floating regasification terminals worldwide and controls roughly 25 per cent of global floating LNG import capacity.

carolyn.guniss@rjrgleaner.com