Bahrain Inks LNG Receiving Terminal Agreement

Bahrain on Wednesday signed an agreement for development of an LNG receiving and regasification terminal.

The agreement was signed between a consortium composed of Teekay LNG Partners, Samsung C&T and Gulf Investment Corporation and the Government of the Kingdom of Bahrain.

The project, to be developed on a BOOT (build, own, operate, transfer) basis, will be located in Hidd industrial area of Bahrain and will help meet the increasing demand for gas,

The Oil and Gas Holding Company (Nogaholding) awarded the project to Teekay LNG-Samsung-GIC consortium following an international competitive tendering process. The project will be owned and operated through a new joint venture, Bahrain LNG W.L.L., owned by Nogaholding (30 percent), Teekay LNG (30 percent), Samsung (20 percent) and GIC (20 percent).

The project will comprise a Floating Storage Unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility. The project will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a twenty-year agreement commencing on 15 July 2018.

The project is expected to cost approximately $655 million.

The consortium also chose South Korea's GS Engineering & Construction as the engineering, procurement and construction contractor of the project.  Teekay LNG will supply the floating storage unit vessel through a 20-year timecharter.