The Utilities Regulation and Competition Authority (URCA) has published NGS 26/2026 – Final Determination and Order on Liquefied Natural Gas (LNG) Import Exemption (Exemption #2 – Transit Import Exemption), dated 18 September 2026.
The Final Determination establishes the regulatory basis for exempting persons from the requirement to obtain an LNG import licence in specific circumstances involving the transit of LNG through Bahamian waters. Under the Natural Gas Act, 2024, URCA may exempt persons or classes of persons from licensing requirements where appropriate.
The exemption applies specifically where LNG is brought into The Bahamas solely for a Transit LNG Import Activity, namely for the purpose of bunkering a vessel in Bahamian waters or lightering LNG from one vessel to another, and where the LNG is not intended to remain in The Bahamas or be used for domestic consumption.
URCA determined that requiring a separate LNG import licence for these activities could create disproportionate and duplicative regulatory requirements, particularly where the associated transfer operation is already subject to the Natural Gas Transfer Operations Regulations, 2025. These Regulations continue to apply to relevant activities and include requirements relating to registration, approvals, technical standards, safety, environmental protection, insurance, emergency preparedness, reporting and incident notification.
The exemption does not provide any independent right to store, regasify, transport by pipeline, retail, supply or otherwise deal in LNG or natural gas in The Bahamas outside the strict scope of a Transit LNG Import Activity. It also does not remove or limit any requirements under the Natural Gas Transfer Operations Regulations or other applicable laws.
The Final Determination follows URCA’s publication of the Preliminary Determination and Draft Order, NGS 20/2026, on 17 July 2026. The consultation period closed on 17 August 2026. No submissions were received from interested parties, stakeholders or members of the public during the consultation period.
Under the accompanying Order, URCA retains the authority to require information, records, reports, explanations or supporting documents from persons relying on the exemption, or from persons connected with a Transit LNG Import Activity, for the purpose of verifying compliance and carrying out its regulatory functions.
The Final Determination and Order comes into effect from the date of publication on URCA’s website and will be reviewed from time to time where circumstances warrant. URCA is also publishing the associated LNG Import Exemption as a standalone document.
Stakeholders and interested members of the public are encouraged to review NGS 26/2026 – Final Determination and Order on Liquefied Natural Gas (LNG) Import Exemption for full details of URCA’s decision, reasoning and the conditions governing the exemption.
You can download both documents below: