The price of natural gas produced at the Bahrain Field is to go up next year, which will affect some of Bahrain’s large industrial companies, according to oil industry sources.

'The price will increase from the present $1.5 per British Thermal Unit (BTU) to $2.25/BTU,' said the sources, adding that the increase will be effective from January.

Major customers who get the gas to run operations include Alba, Gulf Petrochemical Industries Company (GPIC), Gulf Industrial Investment Company (GIIC), the Bapco refinery, Kraft, Aluwheel and Midal Cables.

The Al Dur Power and Water Treatment Plant, set to go on stream in November, will also be one of the customers.

'This increase will not affect the common man in any way whatsoever since this is only natural gas from the Bahrain Field,' the sources said. 'Customer companies, however, will have to re-adjust their international prices accordingly.'

The sources said even after the increase, the price would still be lower than the $3/BTU in the UAE and the average worldwide price of $10/BTU.

'There has been an increase of between $3 and $10 in the price of natural gas all over the world so by that yardstick, the increase is negligible.'

The price increase reportedly follows a ministerial order issued by Energy Minister Dr Abdulhussain Mirza on Sunday. According to the gas contract between Bapco and all gas users, the government has the right to adjust the price of gas at any time, said the sources.

Bapco last week had inaugurated a natural gas pipeline to the Al Dur Power and Water Treatment Plant.

The pipeline will take care of all of the power plants needs as well as future expansion of industries in the area. – TradeArabia News Service