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Wed 19 May 2010 01:36 AM

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Bahrain expects to award LNG plant contract in 2011

LNG to remain a backup strategy, as Gulf state has begun increasing gas production.

Bahrain expects to award LNG plant contract in 2011
CONTRACT PLANS: Bahrain plans to award an contract in 2011 to build liquefied natural gas import facilities and is in talks with more than 10 international companies. (Getty Images)

Bahrain is in talks with more than 10 international oil companies to build liquefied natural gas import facilities and plans to award a contract in early 2011, the country’s energy minister said. Speaking during an interview in Manama on Tuesday, Abdul Hussain Mirza said: “Once we have LNG facilities in place, we can get gas from any country, whereas if you have a pipeline, you can bring it from only one country,”

He added: “LNG is only a backup strategy, we have already started increasing our own gas production.”

Bahrain is turning to LNG as talks that started at least three years ago to build a pipeline from Iran, the world’s second largest holder of natural gas reserves, are yet to be concluded.

Bahrain is in talks with Qatar, the world’s largest LNG exporter, to supply the gas by tanker, Qatari Energy Minister Abdullah Bin Hamad al Attiyah said yesterday.

The plant will take three to four years to build, Mirza said.

Occidental Petroleum Corp, Mubadala Development Co and the National Oil & Gas Authority of Bahrain plan to boost gas output capacity at the Bahrain oilfield to about 2.7 billion cubic feet a day in five years from about 1.3 billion now, Mirza said.

Oil output will triple in seven years to 100,000 barrels a day, he said.

Occidental and Canadian Natural Resources Ltd have bid for contracts to explore for gas in deep marine areas, he said.

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