In a significant move poised to reshape the Caribbean energy landscape, Excelerate Energy Inc. has cemented its strategy to transform Jamaica into a pivotal regional hub for liquefied natural gas (LNG) supply. This ambitious plan, leveraging surging U.S. LNG production, follows Excelerate’s recent acquisition of New Fortress Energy Inc.’s Jamaican assets in a deal valued at $1.055 billion. The news signals a deepened integration of U.S. energy exports into the Caribbean basin, promising enhanced energy security and economic opportunities across the islands.
A Strategic Acquisition and Vision for the Caribbean
The acquisition, finalized in May 2025, saw Excelerate Energy take ownership of critical infrastructure, including the Montego Bay LNG Terminal, the Old Harbour LNG Terminal (which incorporates a floating storage and regasification unit, FSRU), and the 150-megawatt Clarendon combined heat and power (CHP) co-generation plant. These assets, initially developed by New Fortress Energy in 2015 and 2018 respectively, form the backbone of Jamaica’s natural gas infrastructure, supplying power plants and industrial customers and contributing significantly to the island’s energy independence by reducing reliance on oil-based fuels.
Excelerate’s President and CEO, Steven Kobos, articulated the company’s vision during recent earnings calls, emphasizing a “hub and spoke” model. The Old Harbour floating LNG terminal will serve as the central storage and distribution point, enabling efficient delivery of LNG throughout the wider Caribbean region. This model aims to utilize smaller vessels, thereby reducing crucial shipping times and lowering fuel costs for regional distribution.
Fueling the Hub with U.S. LNG Growth
The impetus behind this strategic expansion is the robust growth in U.S. LNG supply. Excelerate has secured a 20-year sales agreement to purchase 0.7 million tons per year (Mt/y) of LNG from the second phase of Venture Global’s Plaquemines LNG facility in Louisiana, with deliveries set to commence in 2027. This long-term supply commitment is strategically aligned with the approximate 21-year weighted average contract duration of the newly acquired Jamaican assets, minimizing commodity risk and ensuring a stable downstream destination for Excelerate’s volumes.
The broader context reveals a significant uptick in U.S. LNG exports, with volumes to Latin America and the Caribbean increasing by approximately 40% in 2024. The United States is poised to become an even more dominant global LNG supplier, with nearly 70% of new global liquefaction capacity additions by the end of 2026 expected to originate from U.S. projects like Golden Pass, Plaquemines, and Corpus Christi expansions. This surge provides a natural and economically advantageous supply source for the Caribbean, a region historically reliant on imported oil and now seeking diversified and cleaner energy solutions.
Implications and Future Outlook
The establishment of Jamaica as a regional LNG hub carries significant implications. Its strategic geographic location offers Excelerate a structural cost advantage, allowing the company to respond swiftly to regional demand and optimize its shipping routes. The plan also includes expanding LNG trucking and bunkering services from the island, catering to the increasing demand from container and cruise vessels in high-traffic Caribbean shipping lanes.
Beyond distribution, Excelerate foresees substantial growth opportunities within Jamaica itself, including the potential to double the generation capacity of the Clarendon CHP plant to meet anticipated electricity demand. The company expects to generate between $80 million and $110 million in incremental EBITDA by 2030 from optimizing the Jamaican platform and investing $200 million to $400 million in growth capital expenditures across its Caribbean operations.
In a related development, Excelerate recently purchased the LNG carrier Excelerate Shenandoah, with plans for its conversion into a floating storage and regasification unit (FSRU) to bolster its Mid-Atlantic LNG supply business. This marks Excelerate’s first owned asset earmarked for FSRU conversion, underscoring its commitment to flexible and integrated LNG solutions.
This unfolding news highlights Excelerate Energy’s strategic positioning within the global LNG market and its commitment to fostering energy transition and security in the Caribbean, with Jamaica at the forefront of this regional energy evolution.