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Shaikh Mohammed ... bringing about transformation in the oil and gas sector

Shaikh Mohammed ... bringing about transformation in the oil and gas sector

Bahrain key projects register progress


Bahrain’s flagship oil and gas projects – the Bapco Modernisation Programme (BMP), the Banagas expansion project, and new crude oil pipeline between Abqaiq and Bahrain are making 'strong progress', Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa has said.

A consortium of France’s TechnipFMC, South Korea’s Samsung Engineering and Spain’s Tecnicas Reunidas was announced on December 4 as the winner of the $4.2 billion lump sum turnkey engineering, procurement, construction and commissioning (EPCC) contract to expand Bapco’s 79-year-old refinery at Sitra, in the kingdom’s north-east. The contract will see capacity increase from 267,000 bpd to 360,000 bpd and units will be added enabling the production of cleaner, lighter, higher-value fuels, predominantly for export.

Facilities to be added under the BMP include residue hydrocracking, hydrocracking, hydro-desulphurisation, crude and vacuum distillation, hydrogen production, hydrogen and sulphur recovery, tail gas treatment, sour water stripping, amine recovery, bulk acid gas removal and amine recovery units and facilities for the recovery, solidification and handling of sulphur. Completion is scheduled for 2022.

Nogaholding will also soon complete the new crude oil pipeline between Abqaiq in Saudi Arabia and Bahrain. This will be a critical piece of infrastructure to support increased refining capacity at Bapco, and reflects the unbreakable ties between Bahrain and Saudi Arabia, as well as the close commercial relationship between Bapco and Saudi Aramco, a relationship that has spanned over 70 years.

'More than 50 per cent of the construction and modernisation of the pipeline has been completed and the pipeline is now being buried in the south of Bahrain. The project, to be completed this year, is moving steadily according to the plan and budget,' he said.

Shaikh Mohammed said the oil sector in the kingdom is currently working out a clear strategy for involving the private sector in the implementation and management of the oil projects, citing the case of the Bahrain LNG Import Terminal, which is being developed in partnership with the private sector (with a consortium of Teekay, GIC and Samsung).

Nogaholding has awarded a build, own, operate and transfer contract for a liquefied natural gas (LNG) import terminal to a consortium of Teekay LNG, Samsung C&T and the Gulf Investment Corporation. The project is scheduled for completion by February 2019 and will have the capacity to import up to 8.3 billion cubic metres (bcm) per annum.

Bahrain LNG has disclosed that South Korea-based GS Engineering & Construction and subcontractor SixConstruct will begin the offshore construction work at its import terminal located at Khalifa Bin Salman Port in Bahrain from mid-January. The terminal will feature a floating storage unit (FSU), an adjacent re-gasification platform, subsea gas pipelines from the platform to shore, an onshore nitrogen production facility and an onshore gas receiving facility. The terminal is expected to be completed by February 2019.

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