$800m Bahrain LNG terminal on way
Manama, October 26, 2010
A tender to build a $800 million liquefied natural gas (LNG) terminal in Bahrain will be floated today.
Fourteen international companies, who have already been shortlisted and approved by the government to tender for the giant project, will bid for the facility, said Bapco major engineering projects general manager Isa Al Ansari.
'The winning bidder is expected to be named sometime in the first quarter of next year and construction will begin soon after,' he said.
Al Ansari was speaking on the sidelines of the Improving Oil Refineries to Produce Clean Fuels Conference at the Mšvenpick Hotel.
'If all goes well, the terminal should be up and running by the end of 2014,' he said.
The project is set to create hundreds of jobs, added Al Ansari.
He said extensive studies had revealed a large area east of the Khalifa bin Salman Port to be the most suitable site for the project, which would initially have a capacity of 400m standard cubic feet of LNG per day.
'The terminal will be built in such a way that there is a provision to increase capacity to more than twice as much a day,' he said.
A study to set up the terminal was launched in October 2008 by the National Oil and Gas Authority (Noga) in its bid to secure energy for Bahrain's future needs.
Oil and Gas Minister and Noga chairman Dr Abdulhussain Mirza said they were committed to the ultimate goal of securing the necessary energy to fuel the economic growth and prosperity of Bahrain.
He said Noga was pursuing discovery of new oil and gas sources as well as advanced and more efficient recovery of existing and known energy resources.
Dr Mirza said Bahrain would, in the near future, need around 1,000 standard cubic feet of LNG per day to meet its energy needs.
The object of the study was to determine whether or not the introduction of LNG into Bahrain was a realistic and economic option.
It will also assess the commercial viability of constructing an LNG import terminal and identify the best configuration and most suitable location for such a project.-TradeArabia News Service