By Chester Robards Senior Business Reporter

Copyright thenassauguardian

The Utilities Regulation and Competition Authority (URCA) released two public consultations for the natural gas sector (NGS) on Friday, asking interested parties to comment on proposed exemptions for vessels that arrive in The Bahamas carrying liquefied natural gas (LNG) in their fuel tanks for propulsion and operations and not for commercial purposes, and to comment on proposed supplementary licenses for natural gas activities.

URCA said in a press statement announcing the public consultation period, that it is proposing that exemptions be permitted for vessels entering The Bahamas with LNG that will not be for commercial sale, but stored in fuel tanks for the vessel’s own consumption.

URCA’s document explains the exemption: “Pursuant to Section 18 of the Act, URCA hereby exempts any person operating a vessel from the requirement to hold a license under Section 17(1)(a) of the act for the import of LNG to the extent that such LNG is contained within and forms part of the fuel supply of that vessel and is being used, or intended to be used, solely for the propulsion or operation of that vessel.

“This exemption is limited to LNG physically contained in the fuel tanks of the vessel at the time of entry into Bahamian waters, and does not extend to any LNG carried as cargo, whether for consideration, commercial gain, refueling or otherwise.”

URCA explains that this importer license exemption will exist to “avoid disproportionate regulatory burdens while maintaining safety and environmental standards”.

URCA, which is the regulator for the natural gas sector in The Bahamas, explains that in the laws concerning natural gas in the country, the word “import” relates to bringing or to cause to be brought into The Bahamas by any means, natural gas or LNG from any place outside The Bahamas.

“URCA considers that the legislative intent of the NGA (Natural Gas Act) contemplated the requirement for a license for the importation of LNG where such activity is a core purpose of the importer’s business, and the LNG is to either be kept or consumed in The Bahamas,” URCA said.

“URCA is aware that LNG-fueled vessels are beginning to dominate the alternative fuel landscape in the maritime industry. URCA is further aware that LNG has emerged as a bridging fuel in the maritime industry’s push toward decarbonization, driven in part by International Maritime Organization (IMO) regulations such as the 2020 sulfur cap and upcoming mid-term green house gas (GHG) reduction measures resulting from the Marine Environment Protection Committee 83 (MEPC 83) Conference that was held in April 2025.

“Of particular note, is the accelerated adoption and use of LNG in the cruise ship industry by cruise lines coming to The Bahamas. LNG is also being used by container ships and vehicle carriers plying Bahamian waters.”

The second consultation document reveals supplementary licenses for natural gas activities that cover importation, terminal construction, and pipeline construction.

“These measures are designed to ensure the safe, efficient, and transparent development of the sector while supporting national energy policy objectives and protecting consumers,” URCA said.

It added that both consultations are open to comments from licensees, stakeholders, and the general public until 5:00 pm October 12.