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Bahrain to set up massive LNG facilities

Manama, January 29, 2010

Bahrain is to set up facilities to receive hundreds of thousands of tonnes of liquefied natural gas (LNG) in the next few years to take care of its future energy needs.

Oil and Gas Minister and National Oil and Gas Authority (Noga) chairman Dr Abdulhussain Mirza said two studies have already been done on setting up such facilities in the country and both - by US companies Shell and Hess - have found the project viable.

'We have also been told by several gas producing countries they would be extremely interested in exporting gas to Bahrain so we shall ask them to start bidding by the second half of this year,' Dr Mirza told the Gulf Daily News, our sister publication.

'Qatar, Russia and Egypt, among others could be the source of the gas, transported in the liquid form and then turned into gas again to power Bahrain's industries and infrastructure.'

'Gas coming into the country in LNG form is extremely safe and does not require the complicated infrastructure commonly associated with pumping in gas through pipelines.'

The minister said the companies bidding for the project could be tendering for the complete package, which will also look after the imports.

He said Bahrain's gas production is already set to more than double to 2.7 billion cubic feet per day in the next few years, from the present 1.3bn cubic feet per day, thanks to the agreement that has been entered into with the new company Tatweer, launched in Bahrain a few days ago.

'In addition to drilling for oil, they will also contribute to increasing gas production in the country.

'This will take care of the demands of Bahrain for the next 15 years. The LNG imports' infrastructure will then be firmly in place and take care of the energy needs then and also act as a back-up.'

Dr Mirza said one of the world's largest gas drilling companies had started a survey on whether there is gas in Bahrain deeper than the 16,000 feet that has been drilled for the last 78 years.

'It believes there is gas at between 15,000 and 16,000 feet and it has begun a survey. If there is, we shall enter into a production agreement with that company and if there is nothing, there would be no cost to Bahrain.'

The minister said it were the efforts of the political leadership in Bahrain that has made all these developments possible.

'There are many more developments in the offing and we shall soon see Bahrain becoming one of the region's leading players in the oil and gas field,' he added.-TradeArabia News Service




Tags: Bahrain | LNG | Energy needs |

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