NGS 01/2024 – Public Consultation on Natural Gas Sector Framework

URCA issues draft regulatory framework documents for the Natural Gas Sector in The Bahamas

1 August 2024

The Natural Gas Act, 2024 (NGA) came into the force on 1 June 2024. The NGA introduces a statutory framework for the introduction of natural gas into the energy mix of The Bahamas. Moreover, the NGA established the Utilities Regulation and Competition Authority (URCA) as the independent regulator of the natural gas sector (NGS) in The Bahamas.

As the independent regulator of the newly established NGS, URCA is responsible for developing the regulatory framework that would facilitate URCA’s transparent and non-discriminatory regulation of the NGS in accordance with the provisions of the NGA. In particular, under section 8 of the NGA, URCA is mandated to licence all natural gas sector activities in The Bahamas. Additionally, URCA is charged with issuing regulations and guidelines that aim to promote the development and functioning of a safe and reliable natural gas system in The Bahamas.

Considering the introduction of this new sector into URCA’s regulatory remit, URCA considers it necessary to develop an initial compendium of regulatory measures inclusive of licenses, regulations and codes that would compose an initial framework for the regulation of the NGS.

In this regard, URCA in this consultation document annexes the following proposed licenses, regulations and codes (collectively, “regulatory measures”) to be issued by URCA in the NGS:

Licenses: The following licenses have the aim to authorize the holder to develop the corresponding activity under the terms and conditions established therein.
1. Gas Importer License;
2. Gas Transporter License;
3. Gas Shipper License;
4. Terminal Operator License; and
5. Gas Retailer License.
Regulations: The following regulations implement and enforce the Natural Gas Act, 2024 by detailing the requirements to ensure a safe and efficient natural gas system. Under the Natural Gas Act, 2014 regulations issued by URCA under this Act shall have the force of law.
1. Natural Gas Supply Regulations;
2. Liquified Natural Gas Facilities Application for Authorization;
3. Natural Gas Metering Regulations;
4. Liquified Natural Gas Road Transport Regulations;
5. Natural Gas Pipeline Safety Regulations;
6. Liquified Natural Gas Facilities Safety Regulations;
7. Liquified Natural Gas Waterfront Facilities Safety Regulations; and
8. Liquified Natural Gas Ship-to-Ship Handling Operations Regulations.
Codes: The following codes, which are binding, define the practice guidelines to ensure the safe, environmental, efficient and reliable operation of LNG and are based on standardize practices in LNG operations.
1. Natural Gas Network Code;
2. Natural Gas Supply Code;
3. Liquified Natural Gas Import Code; and
4. Natural Gas Retail Code of Conduct.

Given that the preceding regulatory measures will be the initial measures taken to regulate the NGS, URCA will update and modify these regulatory measures from time to time to take account of best practices and comments received from interested parties.

URCA now issues this Consultation document on the proposed regulatory measures inclusive of draft licenses, regulation and codes.

URCA is seeking views from members of the public, licensees and interested parties in relation to the proposed regulatory measures. The regulatory measures have been developed in accordance with the high-level sector policy objectives and the provisions of the NGA. URCA sets out the following objectives for conducting consultation with the public, licensees and other stakeholders.

URCA invites comments and submissions on this consultation document from members of the public, licensees, and other interested persons. The consultation period is 30 calendar days. Responses to this consultation should be submitted to URCA on or before 31 August 2024 by email to info@urcabahamas.bs.

Copies of the consultation document and the other documents can be downloaded below.

URCA NGS Consultation Document for NG Framework Documents

URCA Natural Gas Supply Regulations

URCA NGS LNG Facility Construction Operation or Modification Regulations

URCA NGS Gas Road Transport Regulations

URCA NGS WFF Safety Regulations

URCA NGS LNG Facility Safety Regulations

URCA NGS LNG STS Regulations

URCA NGS Gas Retailer Licence

URCA NGS Terminal Operator Licence

URCA NGS Gas Importer Licence

URCA NGS Natural Gas Import Code