Media Center
2016-01-27
Under the patronage of Minister of Energy His Excellency Dr. Abdul Hussain bin Ali Mirza, a signing ceremony was organised on Wednesday, January 27, 2016 for a Banagas Expansion project agreement, which includes engineering, procurement and construction (EPC) project for a US $ 355 million worth gas plant for the National Oil and Gas Authority (Noga) subsidiary. The agreement was signed by Shaikh Mohammed bin Khalifa Al Khalifa, Chief Executive of the Bahrain National Gas Company (Banagas), on behalf of the Kingdom of Bahrain and Mr. Chairman Emeritus of Japanese company JGC Group Yoshihiro Shigehisa at a ceremony held at Four Seasons Bahrain Hotel in Bahrain.
In a speech made on the occasion, H.E. Dr. Mirza said that the agreement was a significant milestone for Banagas Expansion and added to the achievements of the energy sector in Bahrain. The project is among the many other Noga strategic projects aimed at securing continued economic growth in the country and to raise the standard of living of the people of the Kingdom.
The Minister said that all the strategic projects implemented by Noga over the past year, 2015, reflected the developmental and leadership roles played by oil, gas and energy sector in the economic development process witnessed by the Kingdom of Bahrain. He expressed happiness, appreciation and gratitude to the wise leadership for the support received by the energy sector in the Kingdom, which he said came with positive results and improved the sector, which was a key contributor to the national economy.
H.E. Dr. Mirza said that setting up of the gas project by JGC further enhanced the historical relations between the company and the oil companies in Bahrain. The Japanese company has earlier fulfilled several projects in Bahrain, including a Banagas project in 1979. The agreement was a result of the distinguished relations between Bahrain and Japan over the past years and due to the world-class reputation of JGC Corporation and the prestigious reputation it had among oil sector industries.
Three international companies had participated in the tendering process at the design and construction phase of the gas plant, a design which had to accommodate 350 million cubic feet of associated gas from the Bahrain Oil Field and produce liquefied petroleum gas and naphtha, utilizing re-injection pressure and excess gas. The plant will be equipped to processing dry gas.
The project is expected to take 32 months to be ready for a trial run and start actual operations in September 2018. It is one of the largest projects implemented by the company in terms of capital, energy utilization and providing job opportunities to Bahrainis.
H.E. Dr. Mirza concluded his speech by stating that the project was an extension of the NOGA strategic investment moves in the year 2015, where several projects were implemented, the most important ones being:
A US $ 600 million floating liquefied natural gas (LNG) terminal to handle and process gas imports, a $ 350 million worth oil pipeline project between the Kingdom of Bahrain and the Kingdom of Saudi Arabia , 115-kilometer long pipeline - 42 km under water and 73 km on the land. Another important project was a US $ 100 million worth Gas Dehydration Unit, a Tatweer Petroleum facility aimed to meet the growing domestic gas demand. A gas supply agreement was signed between the Bahrain Petroleum Company (Bapco) and Aluminium Bahrain (Alba), which is one of the most significant agreements in the field of natural gas supply since Noga was established 10 years ago. The agreement was also a historical development for Alba, which added a sixth production line with the deal. On the side-lines of the Bahrain International Air Show hosted by the Kingdom of Bahrain last week, an agreement was signed between nogaholding and Bahrain Airport Company to facilitate a $ 52 million plan for the relocation of aviation fuel tanks from Arad to the airport complex. The latest Banagas Expansion project aims to utilise the 350 million cubic feet of associated gas resulting from increased crude production by Tatweer Petroleum.
The Minister said that all the oil and gas sector investment projects in the Kingdom of Bahrain were being carried under the guidance of the esteemed Government in the key sector, which was a key contributor in national economy and supported the modernization and development projects taking shape in the Kingdom of Bahrain.
His Excellency Dr. Shaikh Mohammed bin Khalifa Al Khalifa, Chief Executive Officer of Bahrain National Gas (Banagas) expressed his appreciation for the wise leadership of the Kingdom of Bahrain for the support extended to the oil and gas sector companies affiliated to Noga. He thanked H.E. Dr. Mirza for his unfailing support for all Banagas programs, and expressed his appreciation for attending the signing ceremony. He explained the ownership of the project, which had Banagas Expansion and nogaholding owning 100% shares. Banagas will oversee the management and operation of the new project as agreed upon in a contract between the Banagas Expansion and Banagas.
