Bahrain will soon be awarding the contracts for the Phase 2 expansion of the Bahrain National Gas Company (Banagas), the kingdom’s Energy Minister Dr Abdul-Hussain bin Ali Mirza has said.

 

The Banagas expansion project aims to utilise the excess associated gas resulting from increased crude production by Tatweer Petroleum, Dr Mirza said while inaugurating the 2nd Energy Management Conference and Exhibition.

 

(The expansion will increase Banagas processing capability by 350 million cubic feet of associated gas. The Banagas 2 project is estimated to cost $600 million).

 

Bahrain has 14 initiatives for the National Strategy for Energy Sustainability, Dr Mirza said.

 

As part of it, the kingdom had signed a historic agreement a few days ago, in order to build a floating liquefied natural gas (LNG) receiving facility with 400 million standard cu ft capacity per day, which should be ready by 2018.

 

The floating terminal will facilitate LNG imports to Bahrain, to support the government programmes, and meet the country’s oil and gas sector development, as well as the expansion programmes in the oil industry.

 

Earlier this year, a landmark gas supply agreement had been signed between Bahrain Petroleum Company (Bapco), and Aluminium Bahrain (Alba).

 

It was the largest gas contract that had been signed since the establishment of the National Oil and Gas Authority (Noga) ten years ago, to provide gas to Alba’s sixth line, said the minister. 

 

“This year also saw the signing of contracts for the new enhanced capacity oil pipeline project, linking Bahrain to Saudi Arabia, which is a big event in the modern history of oil, due to the importance of the new pipeline in supporting our national economy, and answering the sustainability of supply of the crude,” he added.

 

The new pipeline will provide additional crude to Bapco’s refinery expansion plans, which already include energy efficiency improvements technologies.

 

“We have also invited IOCs (international oil companies) to participate in our deep gas exploration project. We are also planning to import electricity through the GCC grid linking Kuwait, Bahrain, Qatar, Saudi Arabia, UAE and Oman, so that we conserve the gas that otherwise, would have been required to generate the same quantity of electricity,” said Dr Mirza.

 

Moreover, Bapco formed a multi–disciplined Energy Team a decade ago, to mobilise key energy improvement initiatives.    

 

Also, industry experts have been engaged to perform an energy audit, to recommend state-of-the-art technologies and implement quick-hit recommendations. 

 

The miniser pointed out that an Energy Conservation Policy had been developed in-house, with the objective to reduce overall energy consumption, and subsequently, optimise the use of energy, so that natural resources are conserved.

 

“We are also pursuing, a Real-time Energy Management and Optimisation software, to optimise the energy cost and improve energy efficiency of the refinery, in real time,” he noted.

 

The cabinet in 2013 had approved the establishment of a sustainable energy unit in Bahrain, which will make a significant contribution to energy conservation and utilisation of renewable energy, in the energy mix, to complement fossil fuel, while promoting clean energy, and improving energy security.

 

This unit is currently working diligently to develop a Bahrain National Energy Efficiency Action Plan (NEEAP), and to develop a National Renewable Energy Action Plan (NREAP), and to prepare the initial proposal for energy efficiency levels, and labelling requirements for appliances and initial proposal for the Feed-in-Tariff (FIT).

 

Back in June 2014, Bapco implemented a solar experimental project that produces 5 MW of solar power, and possible expansion thereafter, using Bapco refinery, Awali and University of Bahrain’s roof tops.

 

Also recently, Electricity and Water Authority awarded a contract to a German firm to produce 2 MW of Solar Power and 3 MW of Wind Power, next to Al-Dur Power Plant.Tatweer Petroleum Company too had awarded a contract some time back for a project to meet its energy needs by solar energy.

 

World economy is driven by energy production and usage, which in turn accounts for two third of the world’s greenhouse gas emissions.

 

“Hence, significant energy management strategies to control the energy expenditures of businesses, is a must. We can reduce environmental risks, by making smarter energy decisions, starting at the production stage,” he said.

 

Dr Mirza pointed out that the fuel demand will always keep increasing, and so will production. "However, what can change is the investment styles and venues, for example, investments in fossil fuels or renewable energy," he stated.

 

The World Bank reported in October 2015, that from the second half of 2016, the crude oil prices will slowly rise until 2025, but will not get to the three-digit level.

 

“However, there are other different forecasts by other agencies, and we all know that it is very difficult to predict the future oil prices,” he noted.

 

Analysts warn of longer and tougher market conditions for oil producing countries, and that the next two years, at least, will go in adjusting to an environment of low prices.

 

The conference theme, opens up huge areas to deliberations, from investments, to unified regional energy policies, from role of energy regulators to the wider question of energy security, and the more regional, air quality in Gulf Cities, traditional concerns such as oil spill contingency plans, hazardous waste management from oil industries and private sector financing.

 

“We know that sustainable development is the key to strategic planning for any country, and is dependent on how well nations succeed in energy management, and affects all aspects of development, whether social, economic, or environmental,“ observed Dr Mirza.

 

Energy security, he stated, depends on the ability to react promptly to sudden changes in the supply-demand balance. Ity is a core element, in any national development plan, and energy management is the vehicle to transport nations to prosperity, he added.

 

An ideal energy scenario, is where an energy management system, ensures the following: adequate energy sources to fuel the present, without compromising the energy needs of future generations, and without spilling any environmental impact. 

 

“An efficient integrated energy plan accommodates technologies that go beyond sustainability, to other key areas such as generation efficiency. I am sure we will learn much from various energy policy and management perspectives, shared here by energy management experts,” he stated.

 

During the past decades of fast economic expansion, the GCC countries have stressed more on energy diversification than productivity. “Our high growth rates have come at a high price, an increased share of internal fuel consumption.” 

 

“The fossil fuel exports are still the main source of income for the GCC countries. A balance between economic growth and energy consumption, is critical for sustaining our development programmes. Enhancing energy productivity through efficiency measures, is our best bet for maintaining such balance," he added.

 

“Energy is central to life. In order to sustain life, we will have to sustain our energy supply, and the focus has to be energy management. 

 

“In a strange coincidence, as we discuss sustainable energy policies for the Middle East, in Paris, environmentalists, world leaders and academicians are engaged in a crucial climate change dialogue,” the minister said.

 

At the World Climate Summit, the countries are discussing the path to a sustainable future for planet earth, and the life it holds, including the human species.

 

Briefly digressing from the conference theme, ‘Sustainable Energy for Developing Countries’, the minister went on to discuss a topic closer to the Paris summit, “just enough to elaborate on where we – the countries in the energy business - stand in terms of energy sustainability.”

 

“While environmentalists warn the world’s business community, to the immediacy of global warming and climate change, those in the business of energy continue to remain major contributors, to this grave scenario. Hence, though the two conversations are happening in different locations, our concerns and solutions are largely interlinked,” he stated.

 

The US Energy Information Administration (EIA), measured CO2 emissions of the world in the previous years, and the forecasts for future emissions.  “If we look at the graph, countries like China and the US, produce more CO2 emission than the Middle East.”

 

But in 2014, European Commission and Netherlands Environmental Assessment Agency, performed a research based on CO2 emission per capita, and considered only carbon dioxide emissions from the burning of fossil fuels.

 

“This time, we see a different picture, US is the 3rd and China is the 11th country of the world, based on CO2 emissions per capita.  This hopefully, should provide food for thought for the decision makers,” he added.

 

Dr Mirza also opened the accompanying heavy oil exhibition, appreciating the state-of-the-art technology on display. He thanked the exhibitors from more than 30 companies who brought in a number of modern exhibits that contributed in energy conservation, preservation, management and sustainability.-TradeArabia News Service