A $355M procurement and construction contract was made to the Japanese firm JGC yesterday.
An agreement on the contract award was signed by Banagas chief executive Dr Shaikh Mohammed bin Khalifa Al Khalifa and JGC Group chairman Yoshihiro Shigehisa, during a ceremony held under the patronage of Energy Minister Dr Abdulhussain Mirza at the Four Seasons Hotel Bahrain Bay.
Three international groups are involved in the tendering process during the design and construction phase of the plant. The project that would increase Banagas’ processing capacity by 350 million cubic feet per day is expected to take 32 months to be ready for a trial run with commissioning expected in September 2018, said Dr Mirza. “It is one of the largest projects implemented by the company in terms of capital, energy utilisation and providing job opportunities to Bahrainis,” he added.
The minister said the agreement was the result of distinguished relations between Bahrain and Japan over the past years and also due to the world-class reputation of JGC Corporation in the industry. The Japanese company has in the past carried out several projects in Bahrain, including a Banagas project in 1979.
According to Dr Mirza, the project was among many strategic initiatives by the National Oil and Gas Authority (Noga), aimed at securing continued economic growth and raising the standard of living of the people. The minister said all strategic projects implemented by Noga over the past year reflected the developmental and leadership roles played by the oil, gas and energy sector in the national economy.
Dr Shaikh Mohammed said the Banagas expansion project aims to utilise excess associated gas resulting from increased crude oil production by Tatweer Petroleum from the Bahrain Field. The new facility will produce liquefied petroleum gas and naphtha, utilising re-injection pressure and excess gas. The plant will also be equipped to process dry gas, he added.
The expansion project is fully owned by Banagas Expansion, a 100 per cent subsidiary of the National Oil and Gas Holding Company (nogaholding). Banagas, however, is 75pc owned by the Bahrain government, 12.5pc by Chevron Bahrain and 12.5pc by Arab Petroleum Investment Corporation.
Banagas will oversee the management and operation of the new project as agreed upon in a contract between Banagas Expansion and Banagas.
by Avinash Saxena
