Bahrain awards LNG terminal contract

Bahrain’s Oil and Gas Authority awarded an LNG import terminal contract Wednesday to a consortium made up of independent company Teekay LNG Partners, South Korea’s Samsung C&T Corporation and Kuwait’s Gulf Investment Corporation.

The $400-million project, which is Bahrain’s first LNG terminal, will have a daily capacity of 24 mcm (800 mcf). The terminal will be owned and operated by the joint venture, with the state assuming a 30-percent share, Teekay LNG Partners holding 30 percent and Samsung C&T and and Gulf Investment Corporation taking 20 percent each.

Bahrain’s demand for LNG is set to grow 2.5 percent each year for the next decade, outpacing the country’s natural gas production of around 15.6 bcm (558 bcf) per year and demand for imports.

Natural gas is used to generate power and produce fuel the local industrial sector as well. Potential pipeline projects with Iran and Qatar have been put on hold according to the US Energy Information Administration, with the LNG terminal scheduled for completion in 2018.

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