Bahrain LNG Terminal Decision Approaches

15 Mar 2013 Issue: 56 / 11

Nogaholding, the investment arm of Bahrain’s National Oil and Gas Authority (NOGA), is set to award a license to build a 500mn cfd LNG import terminal at a cost of more than $500mn by June.

The delayed award has pushed the expected completion date from 2014 to 2016. NOGA is negotiating a Build, Operate & Own (BOO) LNG import terminal and the group has decided to pursue a Floating Storage Regasification Unit (FSRU) , MEES learns. Further delays are possible, given the short global supply of FSRU ships. Ongoing technical analyses may push back the award date further, as Nogaholding is still in the process of determining the optimum characteristics of the FSRU terminal.

Plans to build an LNG import terminal were temporarily put on hold while Bahrain and Qatar discussed the possibility of building a gas pipeline that would supply Bahrain with Qatari gas. Qatar was reluctant to supply Bahrain with subsidized gas and Bahrain did not want to rely on a sole supplier (MEES October 2012). Talks ended between the two neighboring Gulf countries, separated by just 40km of sea – paving the way for the upcoming LNG terminal decision. (CONTINUED - 643 WORDS)